As Americans digest election results after another historic election, the stock market is soaring, and bond yields are higher. Yields hit multi-month highs as growth policies took center stage. In addition, the Fed is expected to lower interest rates by .25 basis points this week and the same in December. These rate cuts are expected to stimulate economic growth and could potentially lead to lower bond yields in the future.
With this yield bump, Muni bonds offer an attractive entry point for new investors and additional yields for existing bond buyers before yields go down. As we follow yield fluctuations, it is crucial to look back at just how far we’ve come over the years. Today’s 30-year T reached 4.59%, as I write, last year, it yielded 4.84%. Looking further back, in 1981, the 30-year bond traded at 15.19%; in 2020, it was 1.20%.
In our current rate-lowering cycle, it is imperative to take advantage of pullbacks. The DRL Group Team has been guiding fixed-income clients through various interest-rate environments for over thirty years. Our extensive experience and knowledge can help you capitalize on market opportunities and fortify your portfolio.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
