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I live in a state with high income tax (CA), and have a few munis that I purchased 1-2 years ago.

Assuming that the state can continue to make payments on its bonds (don't want that issue to obfuscate my question), my question is...

When I look at CA bonds on Fid. or Vgd., the yields for bonds maturing within 3 years are so low, even keeping in mind the tax-equiv. yield, that it looks like it makes more sense to put the money in a CD or even a savings account. Am I missing something here? Why would one want to buy munis, given the super low yields?
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