Sesame Street wrote:“They were created to teach preschoolers that people can be good friends with those who are very different from themselves. Even though they are identified as male characters and possess many human traits and characteristics (as most Sesame Street Muppets do), they remain puppets, and do not have a sexual orientation.”
I don't know if that's because I born and grew up in a small city (15.000 people), or the specifics of my homeland, or the time when I grew up (I'm only 34), but until 16 years old or so (I think) I've never heard even the
word "gay". And of course didn't know meaning either. So to come up with such sexual orientation thing would have been even impossible.