The BNY Mellon AMT-Free Municipal Bond Fund demonstrated robust performance in the final quarter of 2025, with its Class I shares yielding a 1.66% return, comfortably outpacing the Bloomberg U.S. Municipal Bond Index's 1.56%. This strong showing highlights a period of significant growth for municipal bonds, which concluded the year with impressive gains. The broader bond market also celebrated its most successful year since 2020, underscored by the enduring stability of municipal credit conditions.
BNY Mellon AMT-Free Municipal Bond Fund's Stellar Q4 2025 Performance
For the three-month period ending December 31, 2025, the BNY Mellon AMT-Free Municipal Bond Fund's Class I shares recorded a commendable return of 1.66%, excluding any sales charges. This performance notably surpassed its industry benchmark, the Bloomberg U.S. Municipal Bond Index, which posted a 1.56% return during the identical timeframe. This success was largely driven by a flourishing municipal bond market that experienced a pronounced rally throughout the fourth quarter. These bonds demonstrated superior performance when compared to U.S. Treasuries and corporate bonds, a trend supported by advantageous technical market factors. The year 2025 marked a significant rebound for the bond market as a whole, delivering its best annual returns since 2020. This positive momentum was underpinned by a sustained belief in the stability of municipal credit conditions.
The strong fourth-quarter performance of the BNY Mellon AMT-Free Municipal Bond Fund serves as a testament to the resilience and potential of the municipal bond market. Investors can draw inspiration from this period of growth, reflecting on the importance of strategic asset allocation and the benefits of a stable credit environment. This outcome encourages a continued optimistic outlook on municipal investments, especially given the positive trend observed in overall bond market returns.
