Municipal bond yields are high compared with Treasuries and other taxable bonds.
The trend is largely a result of investors piling into Treasury bonds in a flight to safety, which has pushed Treasury yields lower.
Still, municipal bonds have held up well and did not collapse as some analysts forecast. So for investors looking for bonds, municipal bonds look good relative to other bonds.
Between 2001 and 2007, the average muni-to-Treasury-yield ratio was 86%, according to InvestmentNews. Currently that ratio is above 100% and has spiked close to 200%.
The nearly $3 trillion muni bond market includes more than 1.5 million distinct bonds.