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15th June 2026

Municipal market update

Volatility persisted last week as the market reacted to the release of economic data and continued geopolitical developments. Core CPI came in as expected at 4.20%, while PPI came in lower than expected at 6.40%. Treasuries saw a modest sell-off into Friday.

The SIFMA Municipal SWAP Index reset to 2.89%, 75 basis points above the prior week.

Headlines surrounding U.S.–Iran tensions continued to drive intraday changes, with treasuries rallying late in the week after comments indicating potential de-escalation. Over the weekend, the U.S. and Iran agreed to a framework aimed at ending the conflict, reopening the Strait of Hormuz, and initiating a 60-day negotiation period regarding Iran’s nuclear program. The easing of supply concerns pressured oil prices lower, with WTI crude falling to approximately $80 per barrel, helping support a rally in Treasuries and pushing yields lower.

Attention now turns to this week’s Federal Reserve meeting awaiting signals on policy direction under new Chair Kevin Warsh. The widely expected result is the federal funds rate will be held steady at a range of 3.50% to 3.75%. Market resilience continues and investor demand for municipals remains strong with Lipper reporting an eighth consecutive week of inflows. However, this is the first week below $1 billion following five consecutive weeks exceeding $1 billion. Supply continues to remain elevated but shows a decline compared to the prior week.

The SIFMA Municipal SWAP Index reset to 2.89%, 75 basis points above the prior week.

The three largest transactions of this week include the following:

  • $637.865 million Miami-Dade County Aviation Revenue Refunding Bonds, Series 2026A & B (NR/A+/A+/AA-)

  • $509.620 million New York State Housing Finance Agency Affordable Housing Revenue Bonds, 2026 Series D-1, D-2, 2026E, & F (Aa2/NR/NR/NR)

  • $366.900 million State of Louisiana General Obligation Refunding Bonds, Series 2026-B (Aa2/AA/NR/AA)

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