Reuters clients get in-depth look at muni market

Reuters readers have been kept ahead of competitors as top-rated municipal bond yields have struck repeated record lows in the last two weeks on the Municipal Market Data scale. On August 13th, Reuters explained that muni gains have come despite a stream of gloomy reports about the state of state and local government finances. Two forces are driving the rally – taxable Build America Bonds, which are eating up the supply of tax-exempt debt and the expectation that income tax rates with rise in the near future. This story was part of a special package on state finances.