BOSTON (AP) — Municipal bonds continue to provide a reliable refuge from stock market volatility and a steady source of tax-free income.
An index of muni bond mutual funds has recently been yielding around 2.18 percent. While that's nothing to brag about, it's a substantially higher yield than the roughly 2 percent that 10-year Treasury bonds offer, without factoring in the tax-exempt advantage that munis offer.
What's more, muni bond fund performance has recently been solid, as is typically the case with steady-as-it-goes munis. Funds investing in intermediate-term bonds issued from a variety of municipalities nationwide had returned about 0.7 percent through late May, according to Morningstar.
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