Roller Coaster Returns in the Municipal Bond Market
In early April 2025, municipal bond investors took an unexpected roller coaster ride. Yields on high-quality, 10-year municipal bonds jumped from 3.0 percent to 3.7 percent in just two days. Measures of market uncertainty, like the University of Chicago’s “Muni VIX” index, hit their highest levels since the start of the pandemic. Municipal market participants described the experience as “chaotic” at best, and a “bloodbath” at worst. Several big-picture factors played a role.
Publication Date: October 2025
Author: Justin Marlowe
