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https://www.wsj.com/articles/fed-rate-policy-is-shaking-up-the-world-of-muni-debt-72b98e85

Fed Rate Policy Is Shaking Up the World of Muni Debt

Demand is down for municipal bonds, which have erased nearly all of their January gains

Concerns that the Federal Reserve will continue to increase rates have affected municipal fund inflows.Photo: Ting Shen/Bloomberg News

By Heather Gillers

Updated Feb. 24, 2023 3:07 pm ET

The markets’ bumpy start to 2023 is causing whiplash even in the historically placid realm of state and local government debt. Municipal bonds this month have erased nearly all of their January gains after fears of rate increases cooled investor appetites.

“It has been a roller coaster,” said Nathan Will, head of municipal credit research at Vanguard Group.

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