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3rd November 2025

Municipal market update

This week marks the beginning of the second month in which the government has been shut down. With the quantitative data on pause, all eyes are on Fed speaker commentary to address the current and future stages of monetary policy. With the FOMC meeting on Wednesday, visible supply for last week was $11.3 billion, noticeably lower than the yearly average of $14.7 billion.

Municipal mutual funds saw their 5th consecutive week of reported in lows at $720 million. The SIFMA Municipal Swap Index reset to 3.22%, up 72 basis points from the previous week's 2.50%.

As reported, the Fed cut rates by 25 basis points (Target range = 3.75% - 4%). Investors quickly shifted their focus to the FOMC meeting in December as Powell stated "A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it". Trade discussions continued as Trump and Xi Jinping met last Thursday in South Korea. Tariffs on Chinese goods were softened as the administration expects a trade agreement relatively soon.

Approximately $10.1 billion of municipal bonds are expected to price this week, about 43% higher than last week given the reduced volume with the FOMC meeting last Wednesday. Cabrera will be serving as Joint Bookrunner on the $327.510 million City of Chicago – Chicago O’Hare International Airport transaction.

The week’s largest transactions include the following:

  • $2.699 billion Southeast Energy Authority, Energy Supply Revenue Bonds, Series 2025E (Aa3/NR/NR/NR)

  • $977.650 million Department of Water and Power of the City of Los Angeles, Water System Revenue Bonds, 2025 Series C (Aa2/NR/AA-/AA)

  • $561.000 million Sullivan County Resort Facilities Local Development Corporation, Tax-Exempt Revenue Bonds, Series 2025 (NR/NR/NR/NR)

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17th November 2025

Municipal market update

The municipal market held steady last week with MMD unchanged despite a light new issue calendar last week met with uneven demand. Lipper reported steady fund inflows at $405 million with a slowing primary calendar and upcoming November and December redemption flows, providing a favorable backdrop.

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