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. In Washington, Transportation Secretary Sean Duffy signaled that flight restrictions at major airports could begin to ease this week, contingent on safety data and staffing recovery.

The SIFMA Municipal Swap Index reset to 2.45%, down 23 basis points from the previous week's 2.68%.

Meanwhile, October’s employment report will be released without an unemployment rate reading, as the household survey was not conducted during the month, according to National Economic Council Director Kevin Hassett. Rising price pressures continue, as service-sector costs continue to increase. Inflation concerns are increasingly top of mind for some Federal Reserve officials ahead of the Dec. 9 10 FOMC meeting, reducing the likelihood of a December cut below 50%. While policymakers agree the labor market has cooled, they remain divided on the depth of the slowdown. Boston Fed Reserve President and voting member of the rate-setting FOMC, Susan Collins, who supported recent cuts, signaled caution on Nov. 13, noting she would hesitate to ease further absent clear evidence of labor-market deterioration, particularly given the lack of official inflation data during the shutdown.

Municipal negotiated bond issuance is projected to reach approximately $14.1 billion this week, marking an increase from the $9.7 billion last week. Cabrera will be serving as Senior Manager on the $55.800 million Inglewood Joint Powers Authority Lease Revenue Bonds, Series 2025 Inglewood Main Library Renovation and Seismic Retrofit Project (NR/AA/NR/NR) and on the $25.000 million Mount Pleasant Elementary School District General Obligation Bonds, Series S & T (NR/AA/NR/NR). Cabrera will also be serving as co-manager on the $211.220 million Harris County Toll Road Authority Toll Road First Lien Revenue Refunding Bonds, Series 2025A (Aa2/NR/AA/NR).

The week’s largest transactions include the following:

$2.100 billion Ascension Taxable Refunding Bonds, Series 2025 (Aa3/AA/AA/NR)
$1.744 billion Ascension Health Alliance Revenue Bonds, Series 2025 (Aa3/AA/AA/NR)
$1.031 billion New York Municipal Water Finance Authority Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2026 Series AA (Aa1/AA+/AA+/NR)

Download the full update