Market Minute: Why Municipal Bonds Stood Out in October
ALLYSON KRAUTHEIM, PORTFOLIO SPECIALIST
November 4, 2026
Yields came down a bit in October, but they remained elevated compared to history, especially in the municipal bond market. At month end, the Bloomberg Municipal Bond Index had a yield to worst of 4.2%, which worked out to a 7.12% on a tax-equivalent basis for investors in the highest federal tax bracket. Credit fundamentals were strong, and munis have historically defaulted less often than comparable corporatebonds.
Portfolio Specialist Ally Krautheim breaks down what's behind the numbers, including how the supply-and-demand picture factors into the team's view.
The Victory Income Investors team's fast take? Attractive income, solid credit and a supportive supply picture put munis in focus this month.
