✅   BNY Mellon High Yield Municipal Bond Fund Q2 2024 Commentary

Finance

Municipal bond (Muni's) yields were pressured higher during most of the 1st half of 2024, although a late June rate rally mitigated the impact. Muni yields followed US Treasury rates directionally and were further impacted by heavy new issue supply which neared the highest pace in a decade. The demand backdrop benefited from solid reinvestment activity from coupons and maturing bonds although mutual fund flows were tepid during 2nd quarter of 2024 (2Q24) adding only $0.3bn. The softness in bond prices during 2Q24 led valuations versus US Treasuries to cheapen toward more attractive levels with the 10-year Muni/UST ratio ending the quarter near 65%, up from 61% at the end of previous quarter.

seekingalpha.com     Oct 01, 2024