Muni Investors Need to Watch Washington for Transportation Bill Clues

Municipal bonds are a good buy, yet investors should keep an eye on Washington as states wait for funds from a national transportation bill.
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Municipal bonds are a good buy in the wake of Federal Reserve Chair Janet Yellen's recent dovish statements, yet investors should keep an eye on Washington as states wait for funds from a national transportation bill, said Jim Colby, Senior Muni Strategist for Van Eck Global. Colby added that the supply vs. demand equation is a positive one for municipal bonds in the coming months. He expects the Federal Reserve to raise interest rates later this year due to improving economic data. Finally, Colby said tax season could be a good entry point for investors looking to buy municipal bonds.