Municipal-Bond Yields Reach High for 2023 Prompting Calls to Buy

Yields on tax-exempt municipal bonds have touched their highs for the year, prompting analysts to recommend investors start thinking about buying the asset class again.

“We are at very attractive absolute yields, and though ratios are rich, I think we see more retail demand going into year end,” said Nisha Patel, a managing director of SMA portfolio management at Parametric Portfolio Associates LLC, in an email. “I think we have a lower 10-year yield at year end.”

Top-rated municipal bonds maturing in a decade kicked off Tuesday at around 2.9%, the highest since Nov. 16, according to data ...