(Bloomberg) -- The $3.7 trillion municipal market is on pace for its first monthly loss of 2014, and trailing gains in Treasuries amid a glut of issuance by states and localities.
Benchmark 10-year munis yield 2.28%, compared with 2.34% on similar-maturity Treasuries, data compiled by Bloomberg show. The ratio of the two interest rates, a gauge of relative value between the asset classes, climbed above 100 percent yesterday for the first time since February. A rising figure signals that tax-free bonds are weakening relative to their federal counterparts.
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