How Municipal Bonds Are Beating Treasuries in 2026

With the 10-year Treasury yield stuck at 4.54 and the 30-year hovering near 5 percent, municipal bonds are offering investors a compelling alternative. In this episode, Lucas and Luna break down why munis are outperforming — thanks to a seasonal supply crunch, strong state tax revenues, and a yield ratio that now favors taxable-equivalent income. They dive into the mechanics of the muni-Treasury ratio, currently near 70 percent, and explain why high-income investors in states like California and New York are seeing after-tax yields that beat Treasuries by a full percentage point. They also discuss the risk of credit downgrades in certain local governments and why a barbell strategy of short-term munis plus long-term pre-refunded bonds might capture the opportunity without reaching for yield. If you've ever wondered why your advisor keeps mentioning munis, this episode gives you the concrete numbers and the strategic logic. #MunicipalBonds #Treasuries #TaxFreeIncome #YieldRatio #CaliforniaMunis #NewYorkMunis #BarbellStrategy #PreRefundedBonds #CreditRisk #PortfolioStrategy #June2026 #BondMarket #TaxEquivalentYield #MuniBonds #FexingoBusiness #BusinessPodcast #Finance #FixedIncome Keep every episode free: buymeacoffee.com/fexingo