American Century High-Yield Municipal Fund Q1 2026 Commentary
2026-05-23·via All Articles on Seeking Alpha
Summary
U.S. investment-grade bonds, including municipal bonds (munis), declined slightly in the quarter. Surging interest rates in March largely drove the quarter's decline.
First-quarter municipal bond issuance totaled $127.8 billion, down from $142 billion in the fourth quarter but up nearly 6% from a year earlier, according to SIFMA.
Sector positioning boosted performance compared with the benchmark, mainly due to weightings in the retirement community, charter schools and state GO sectors.
Our duration positioning, which was longer than the benchmark's duration, detracted from first-quarter results.
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Goal and Strategy
Total return and current income that is exempt from federal income taxes through high-yield municipal bonds.
