Tax-Exempts Head for Worst Quarter Since 1994 as Yields Climb

Bloomberg reports:

Tax-exempt municipal bonds are heading for their worst quarterly performance in more than 16 years as yields soared amid a U.S. Treasury selloff and the looming expiration of Build America Bonds.

Municipal investments have lost 4.5 percent this quarter through Dec. 27, the poorest return since a 5.7 percent loss during the first three months of 1994, according to the Bank of America Merrill Lynch Municipal Master index, which accounts for price changes and interest income.