Nuveen’s CIO Weekly Commentary (27 Oct 2025), led by Saira Malik, highlights how municipal bonds are regaining investor favor as U.S. data delays and high equity valuations create a foggy outlook.
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The ongoing U.S. government shutdown is delaying critical inflation and labor data, forcing the Fed and investors to rely on market-based inflation signals, which remain stable around 2.3%.
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S&P 500 earnings up +9.2% YoY reflect strong corporate health, but with a forward P/E of 22.6x, much of the optimism is already priced in—raising the appeal of defensive, income-generating assets.
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Municipal bonds are seeing renewed inflows (+$35.5B YTD), with steepening yield curves and robust credit fundamentals creating attractive tax-equivalent yields near 9.5% for top-bracket investors.
Could munis offer the right mix of defense and yield as uncertainty clouds traditional assets? The full commentary explores Nuveen’s latest allocation insights.
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