rocky

Muni Bond Troubles Worsen

The results for Feb. 29 were much worse according to articles in the Weekend WSJ and the latest Barron's. However, these "yield rallies" did not appear to be fully reflected in Friday's closing mutual fund prices. The Vanguard LT California Tax Free Bond Fund was off by only 0.73%. Will Friday's muni bond prices turn out to be a one day wonder, or are long term muni mutual funds being grossly misspriced? We'll find out in the coming week.