A quick look at the iShares 1–3 Year Treasury Bond Fund (SHY), 3-7 Year Treasury Bond Fund (IEI), 7–10 Year Treasury Bond Fund (IEF) and 20+ Year Treasury Bond Fund (TLT) confirms this:“Safe” Treasuries are TankingLooking at this chart, you might be tempted to think all the pain is already priced in. But if you’re worried that adding to your holdings in these areas might load you up with too much risk, consider some highly underpriced municipal bond funds instead. When we compare these funds to their Treasury-focused cousins, we find that short-term municipal bonds are currently mispriced. Let’s compare SHM with the iShares 1-3 Year Treasury Bond Fund (SHY) mentioned above, and MLN with its longer-term counterpart, the iShares 7–10 Year Treasury Bond Fund (IEF). There are much better shorter-term municipal bond funds out there.

Source: Forbes January 14, 2017 13:17 UTC