Municipal bond mutual funds have been Falling Fast the last week or so. On Tuesday, November 16, 2010 the price of several Vanguard Municipal bond funds fell over 1% apiece, a huge drop.
Municipal bond ETF’s have fallen even faster.
Let’s hope the selling end soon. In retrospect the selling stopped around November 18 and some small gains started then. It looked like the market finally digested all the news and found the temporary floor.