These arguments for an attractive yield in a healthy market are not meant as a timing signal, since there are risks with all investments.
It is possible that the market will continue to price in more interest rate hikes and that outflows could continue. Either of these potential events could lead to further price drops (and yield increases) in the near future.
However, the bond market has already factored in an aggressive Fed rate-hiking campaign. Should the market decide that enough, or too much, rate-hiking has been priced in, and municipal bond fund net asset values stabilize, then cash flows could moderate or turn positive. This, in turn, may lead prices to rebound.
Investors considering a new allocation to the muni sector, or those hoping for reentry after fleeing earlier this year, might consider a cost-averaging strategy. This would help diversify the risk of coming in too early or too late.