Fidelity Tax-Free Bond Q1 2025 Review

(8min)

Summary

  • Fidelity Tax-Free Bond Fund is a diversified national municipal bond strategy investing in general obligation and revenue-backed municipal securities across the yield curve.
  • Heavy new-issue supply and a sharp decline in investor demand in March crimped returns for investment-grade tax-exempt municipal bonds for the first quarter of 2025.
  • Sector performance was mixed, but revenue bonds modestly outperformed general obligation bonds, mainly due to their higher yields.
  • Going forward, the political landscape will continue to be intertwined with the larger macroeconomic environment, including fiscal spending and monetary policy, the factors that have historically dominated muni bond performance.

Tax Free Financial Concept. Entrepreneur or client, Cashback After Shopping Abroad, Business, finance, mortgage rates, value added tax, or discount

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Investment Approach

  • Fidelity® Tax-Free Bond Fund is a diversified national municipal bond strategy investing in general obligation and revenue-backed municipal securities across the yield curve.
  • Our investment approach focuses on fundamental credit analysis, yield-curve positioning and an analysis of

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