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Muni bonds' curve belly offers value amid front-end richness and rising Treasury yields, says American Century.

Market News
21 Jul 2026
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American Century Investments highlights opportunities in the middle (belly) of the municipal bond curve, as the front and long ends show signs of being overvalued due to rising Treasury yields and market volatility. Investors can find attractive taxable equivalent yields through ETFs like TAXF and CATF, despite risks in the front end and some stress in high-yield sectors. Security selection is crucial amid credit downgrades for local governments. The muni bond market remains appealing for tax-sensitive investors seeking yield and diversification.

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