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20th April 2026

Municipal market update

The municipal market was largely unchanged for most of last week, maintaining a steady tone despite ongoing volatility in broader markets. However, investors played catch-up on Friday, with yields moving lower by approximately 4 basis points, marking the strongest performance of the week.

The SIFMA Municipal Swap Index reset higher to 3.65%.

U.S. Treasuries, meanwhile, remained volatile, continuing to trade in a wide range throughout the week, initially rallying on optimism around potential U.S.-Iran peace talks before giving back some gains mid-week. Treasury yields moved lower again on Friday following headlines from the Iranian Foreign Minister, stating that passage through the Strait of Hormuz would be “completely open” during the ceasefire period.

Over the weekend, however, tensions escalated once again as Iran reversed its reopening of the waterway over the continued U.S. blockade, pushing oil prices sharply higher and weighing on broader markets this morning. With no clear path to a diplomatic resolution in the near term, headline risk will continue to drive market volatility. Looking ahead, municipal new issue supply is expected to be manageable at approximately $12.5 billion, with the majority coming through the competitive calendar. Weekly fund flows were reported -$427million on Thursday but were

The three largest transactions of this week include:

  • $1.1 billion New Jersey Health Care Facilities Financing, Authority Revenue & Refunding Bonds (RWJ Barnabas Health) (A1/AA-/-)

  • $830.1 million Black Belt Energy Gas District, Gas Project Revenue Bonds (Aa2/-/-)

  • $829.7 million Southern California Public Power Authority, Clean Energy II Project Revenue Bonds (Aa3/-/-)

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6th April 2026

Municipal market update

The municipal market found firmer footing last week as geopolitical tensions surrounding the U.S.-Iran conflict showed intermittent signs of easing through Thursday.

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