1st June 2026
Municipal market update
Municipals were firmer ahead of June reinvestment monies, supported by improving sentiment tied to potential geopolitical developments related to the Iran conflict following two weeks of volatility. Inflation concerns have recently pressured rates, as higher-than-expected PPI and elevated inflation data triggered a selloff, pushing the 30-year Treasury yield as high as 5.18% in the past two weeks. Oil prices also spiked above $105 per barrel amid ongoing Iran-related tensions, contributing to inflationary pressures.