Summary

• The BNY Mellon High Yield Municipal Bond Fund underperformed its index during the first quarter of 2026 on a gross of fee basis.
• Underperformance was driven by sector allocation decisions, particularly underweight exposures to industrial and housing sectors.
• Security selection had a limited impact on relative performance during the period.

Market Review

The bond markets, including U.S. Treasuries and municipals, turned markedly bearish during March, as the US-Israel/Iran conflict drove macro rate volatility and uncertainty. Negative price pressures pushed yields higher in March as concerns over labor market weakness were

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