Municipal bonds should benefit from the Fed's rate cuts, Principal Asset Management said in a report, according to Jinshi Data. The report pointed out that high-quality municipal bonds offer compelling value.

The supply of municipal bonds has grown 40% so far in 2024, causing their prices to fall. However, the asset manager believes that the prospect of lower interest rates should boost municipal bonds by the end of 2024 and likely throughout the period when the Fed cuts interest rates.