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11th May 2026

Municipal market update

Economic data last week reflected continued resilience in the U.S. economy, as April payrolls exceeded expectations with 115,000 jobs added, unemployment remained steady, productivity continued to improve, and unemployment claims stayed historically low, signaling that layoffs remain muted despite broader economic uncertainty. At the same time, the U.S. trade deficit widened modestly due to strong consumer and business demand driving imports higher.

The SIFMA Municipal SWAP Index reset to 2.38%, 71 basis points below the prior week.

In Washington, White House officials firmly rejected any notion of restructuring U.S. Treasury securities, emphasizing that the administration would never support actions resembling a debt default. In New York, debate continues over Governor Kathy Hochul’s proposed pied-à-terre tax on high-value second homes in New York City as lawmakers seek ways to address the city’s growing budget deficit. Within the municipal market, investors continued pouring money into municipal bond funds at the fastest pace in five years, attracted by favorable yields and relative market stability, while electronic trading of municipal bonds reached a record share of overall trading volume, highlighting the asset class’s continued modernization and growing adoption of digital platforms.

Municipal bond funds recorded $1.8 billion of inflows in the latest weekly data. The SIFMA Municipal SWAP Index reset to 2.38%, 71 basis points below the prior week.

The three largest transactions of this week include:

  • $1.178 billion San Francisco Airport Commission, Revenue Refunding Bonds, Series 2026A/B (Aa3/AA-/NR/ NR)

  • $1.174 billion Dormitory Authority of the State of New York, School Districts Revenue Bond Financing Program Revenue Bonds, Series 2026A/B/C (Aa3/NR/AA-/NR)

  • $1.102 billion City of Atlanta, Water & Wastewater Subordinate Lien Revenue and Revenue Refunding Bonds, Series 2026 (Sustainability Bonds)(Aa3/AA-/NR/AA-)

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