While Treasury and Corporate yields fell in June, Municipal yields were generally flat and actually unchanged for the last two weeks of the month, as the summer slowdown kicked in.

This underperformance has brought Munis back to an attractive level vs. comparable Corporates, though not as compelling as back in March. After unprecedented outflows during the market dislocation, Muni Mutual Funds have reported seven consecutive weeks of inflows totaling over $15 billion.

These inflows combined with seasonally elevated coupon and maturity payments should lead to strong demand through the summer.