u/swallowtail_

I don't have a lot of experience w/ munis but I recently learned that because of my high tax bracket (37%) the actual yield on a 2.7% muni bond is closer to 5%+. I'm also in a high tax locality (NYC).

• Is this true? Am I missing something?
• If so, is it generally advisable to only buy AAA munis, are AA and A munis ok?

For context I have a high amount in Tbills earmarked for a primary residence purchase so I'm thinking of moving over to 3 month munis.