Municipal Bonds 9-8-25

Today, national, AAA-rated 10-year municipal bond yields are around 3.25%, 20-year yields are about 4.40%, and 30-year yields are approximately 4.65%, though these figures can change rapidly. The market offers varied yields depending on credit quality and maturity, with high-yield and taxable municipal bonds often providing higher rates. Investors should consult financial sites like FMSbonds.com for real-time data, as yields fluctuate daily.   

Current Municipal Bond Rates 

AAA-Rated National Bonds (example rates):

o   10-year: ~3.25%

o   20-year: ~4.40%

o   30-year: ~4.65%

Factors Influencing Rates

Credit Quality: Higher-rated bonds generally offer lower yields, while lower-rated (high-yield) bonds typically provide higher rates to compensate for increased risk. 

Maturity: Yields usually increase with longer maturity dates. 

Market Conditions: The overall economic environment, including expected Federal Reserve actions, can influence future rates. 

Tax Status: Municipal bonds are generally tax-exempt, which can make their after-tax yields more competitive with taxable bonds. 

How to Find Real-Time Data

·       FMSbonds.com: Provides current yields for AAA-rated municipal bonds. 

·       Bloomberg.com: Offers up-to-date rate information for various municipal bond maturities. 

·       MunicipalBonds.com: Shows recent trading data and specific bond yields. 

Key Considerations

Historic Context: While yields vary, current rates may be attractive compared to historical performance. 

Federal Reserve Policy: Expectations of Fed rate cuts can impact short-term and long-term municipal bond yields. 

After-Tax Returns: For most investors, the tax-exempt nature of municipal bonds often results in better overall returns than taxable bonds. 

Municipal bonds and rates today

Based on data from yesterday, September 5, 2025, the municipal bond market saw a rally after weaker-than-expected job data solidified expectations for a Federal Reserve interest rate cut

According to the Bond Buyer, municipal yields were bumped 2 to 12 basis points yesterday, with the largest gains in long maturities. For example: The 10-year AAA municipal yield was at 3.09%.

Comments

Municipal Bonds are a bad deal for taxpayers. School Boards fund new schools with Municipal Bond Loans that generally double the cost of the school. A 30-year loan at 5% interest makes a $20 million school cost $40 million. They should not be replacing schools every 20 years. They should fund an effective maintenance program that allows schools to function for 100 years.

School Boards should concentrate on Curriculum and Outcomes.

Comments

I never invested in Municipal Bonds. My 401K got a 10%/yr return from Cigna. I put my Self-Employed Pension Plan with Vanguard 500.

Norb Leahy, Dunwoody GA Tea Party Leader