Franklin Federal Intermediate-Term Tax-Free Income Fund Q3 2025 Commentary (FITZX)

Franklin Templeton 4.62K Follower s Follow 5 Share Save Play ( 5min ) Comments Summary Over the quarter, Franklin Federal Intermediate-Term Tax-Free Income Fund outperformed its benchmark, the Bloomberg Municipal 1-15 Year Index. The fund's yield curve positioning contributed to relative performance during the third quarter, primarily driven by our overweight to muni bonds with 20 or more years to maturity. Rating allocations benefited relative returns for the period, led by our overweight to A rated bonds and underweight to AAA rated bonds. Muni bond issuance exceeded historical averages in Q3 as issuers, who had been reluctant to issue new bonds under the looming threat to their tax-exempt status, came to market. Yields are near multi-year highs, allowing investors to lock in compelling income. ToucanStudios/E+ via Getty Images Key Takeaways Markets: In the third quarter of 2025 (Q3), new issuance of municipal ( MUNI ) bonds exceeded the average seen in the past few years, driven by a 34% year-over-year surge in July issuance. By quarter end, the This article was written by Franklin Templeton 4.62K Follower s Follow Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

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