Chart is for illustrative purposes only. Past performance is not necessarily an indication of future results.
The war in Iran has added pressure to fixed income markets, particularly in U.S. Treasuries. The 10-year Treasury yield recently traded near 4.7% as investors repriced inflation risk and the economic effects of higher energy costs and what that may mean for monetary policy. At the same time, municipal bond yields have risen as well, with 10-year tax-free bond yields reaching roughly 3.8% or 6.3% on a tax-equivalent basis. This is key because entry-point yield is often a strong indicator of long-term return potential.1
While yield volatility is likely to persist, our Tax-Managed Fixed Income strategy seeks to uncover value in the municipal bond market through disciplined security selection, active risk management and tax-aware portfolio management.
1Source: Bloomberg as of 7/25/26.
All investments involve risk, including the possible loss of principal. Certain investments have specific or unique risks that should be considered along with the objectives, fees, and expenses before investing.
Asset allocation and diversification cannot ensure a profit or protect against a loss.
Bloomberg Municipal Bond 10 Year (8-12) Index: The Muni Bond Index is a benchmark that tracks the performance of investment-grade U.S. municipal bonds with maturities generally between 8 and 12 years, representing the intermediate portion of the municipal bond market. Yield to Worst: Yield to Worst is the lowest potential yield an investor may receive on a bond, assuming the issuer does not default and uses the earliest allowable call, redemption or maturity date that results in the lowest return. It helps investors understand the most conservative yield scenario for a bond.
Bonds are subject to interest rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. Municipal income may be subject to state and local taxes. Capital gains, if any, are taxable. High yield bonds involve increased credit and liquidity risk than higher rated bonds and are considered speculative in terms of the issuer's ability to pay interest and repay principal on a timely basis.
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