Nuveen’s Saira Malik says these are her top three income ideas right now

Select segments of the fixed income market are offering compelling opportunities as bond yields march higher, according to Saira Malik, chief investment officer at Nuveen. Treasury yields climbed on Friday on the heels of a hot May jobs report . Payrolls grew by 172,000 last month, surpassing the Dow Jones consensus call for 80,000. The yield on the 10-year Treasury rose as high as 4.548%, while the rate on the 2-year note touched 4.178%. Still, Malik told CNBC that she spots an emerging opportunity in high-yield municipal bonds. In addition to their attractive yields, muni bonds also have an added tax benefit, which makes them attractive to investors in higher tax brackets. The interest income isn't taxed on the federal level and it is exempt from state levies if the holder lives within the state the bond is issued. The assets lagged the market last year due to high supply, but they are catching up this year, said Malik, who oversees the firm's $1.4 trillion in assets under management. She specifically likes the high-yield corner of the muni market because is higher quality than it has been in the past. It is also enjoying strong fundamentals, she said. "States have very strong rainy day funds, high savings rates because of the strength of the U.S. economy," she said. Tax-equivalent yields near 10% Those solid rainy day funds make Malik comfortable wading into an area that is lower rated, and therefore riskier, than the investment-grade munis market. …