Investors can grab solid yield in this corner of the muni market, says Nuveen

There's a corner of the municipal bond market that is tied to something on many American's minds right now: holiday shopping. Sales-tax revenue bonds are secured, as the name suggests, by levies generated by sales and they are used to fund essential infrastructure, said Daniel Close, head of municipals at Nuveen. "While tariff-driven price increases create uncertainty about consumer behavior this year, sales tax bonds feature strong security provisions and reserves that have proven resilient through economic cycles," he wrote in a recent note. The bonds may have yields that are generally higher than other munis, Close said in an interview with CNBC. For instance, New York State sales tax bonds compared to the state's general obligation bonds can provide approximately 0.12 to 0.35 percentag