30-Year US Municipal Bond Yield Tops 5% for First Time Since 2011

The symbolic 5% threshold matters less than the composition of this selloff: it is macro-driven, not a verdict on municipal credit, with inflation fears and expected Fed hikes dragging a traditionally rate-sensitive asset class into its worst month in years. That distinction affects issuers weighing new supply into a weakening backdrop and holders watching tax-exempt income finally compete with taxable yields again. Whether the move reflects durable repricing or a rate shock that reverses once Fed expectations settle is the open question.