HAPPY MUNI YEAR Low inflation and high yields are making municipal bonds an attractive buy. The yield on benchmark munis reached 5.99% a few weeks ago, a peak for the year. Those returns have slipped a bit since, but munis still offer relatively high rates. They are yielding more than 90% of a comparable Treasury bond, the result in part of an abundant supply. "Historically, muni yields are not this close to Treasury yields with the same maturity," says Mark Tenenhaus, director of municipal research for Morgan Stanley Dean Witter. The kicker is that the muni bonds are tax free.
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