Those in the highest federal tax brackets benefit most from the tax-exempt status of municipal interest.
For a deeper dive into these trends, Franklin Templeton's 2026 Outlook and Charles Schwab's Bond Market Analysis provide comprehensive views on why intermediate-term maturities are currently favored. should i buy municipal bond funds now
The municipal yield curve remains historically steep. Analysts at Morgan Stanley suggest that 20-year AA-rated munis offer taxable-equivalent yields of nearly 7% , significantly higher than comparable corporate bonds. Those in the highest federal tax brackets benefit