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Muni Massacre

|Includes: iShares National AMT-Free Muni Bond ETF (MUB)
            Municipal bond prices continued their five-day slide to levels not seen since January 1st. The popular I-Shares S&P National Municipal Bond etf (NYSEARCA:MUB) with over $2 Billion in assets has not seen this price since November 19th of 2009. MUB’s technical’s look the worse I have ever seen since the Great Financial Crisis of 2008-2009 when MUB broke down through its long-term 200-day moving average.

Now, the popular I-shares fund is doing the same with a total break down of the 50-day and 200 day with not a single support line within site.
Municipal bond funds have sold off dramatically ever since President Obama last week decided to hint that the Bush Tax cuts might be extended. On the other hand, maybe investors are watching inflation and higher interest rate risk rise dramatically. A combination of both I am sure.

Disclosure: No positions