Pimco Municipal Income Fund PMF Plunges 0.61% Amid Fed Rate Cut Anticipation

Pimco Municipal Income Fund (PMF) experienced a significant decline, dropping 0.61% and marking its fourth consecutive day of losses, with a cumulative decrease of 9.91% over the past four days. The share price hit a record low today, with an intraday decline of 3.93%.

The recent economic uncertainty and tariff turmoil have put mounting pressure on the Federal Reserve to cut rates. This pressure can influence bond yields, which are directly relevant to municipal funds like PMF. The anticipation of a rate cut by the Federal Reserve has led to increased volatility in the bond market, affecting the performance of funds that invest in municipal bonds.

Additionally, recent tariff announcements have led to a decline in global bond yields as investors seek safe-haven assets. This shift in investor sentiment towards safer investments has had a direct impact on municipal income funds, including PMF. The decline in bond yields has made municipal bonds less attractive, leading to a decrease in the value of funds that invest in these bonds.