Muni Market Dip: A Buying Opportunity for Savvy Investors

The municipal bond market is bracing for a surge in new bond sales in September, creating a potential buying opportunity for investors. This anticipated influx of bonds, coupled with a decrease in reinvestment demand, is expected to pressure prices, making them more attractive. Historically, September has been a challenging month for the muni market, with average losses in the past decade. However, this trend has led to discounted valuations and yields, making it a prime time for investors to capitalize. According to experts, most sophisticated investors recognize the post-election slowdown in issuance and are eager to invest their funds during this period of heightened supply. This trend has already attracted interest, with investors adding to municipal bond funds in recent weeks.