Contact us

10th June 2025

Municipal market update

The record weekly municipal volume priced last week continues into this week, as market participants look to price issues in front of the release of CPI and PPI data for May (June 11 and 12), as well as the FOMC meeting the following week. Federal Reserve Chair Jerome Powell delivered remarks last Monday, stressing that the path of policy will depend on incoming economic inflation.

Consumer spending shows that while consumers are experiencing an erosion of confidence, they have not changed their behavior. Fund inflows reported last week decreased to $426.2 million from $525.7 million the previous week. The 4-week moving average last week was $628.5 million compared to $787.4 million of inflows on week ending May 30.

The municipal curve steepened over the past week while the US treasury yield curve remained unchanged. The jobs report released last Friday showed a rise to 139k nonfarm payrolls in May, surpassing expectations of 130k. The unemployment rate remained steady at 4.2% for the third consecutive month. Municipal bond fund flows remained positive for a sixth consecutive week with $426 million in inflows reported on June 4. The SIFMA municipal swap index reset to 1.68% from 1.97% the previous week.

Related Articles

Market Insights

2nd February 2026

Municipal market update

Last Wednesday’s FOMC meeting saw the Committee hold the target range steady at 3.50%–3.75%, as expected.

Read more