20th July 2026
Municipal market update
MMD underperformed USTs this week, with muni yields rising 6–12 bps across the curve while Treasury yields were flat to 5 bps lower. The move came as fixed income markets absorbed renewed inflation pressure from higher energy prices, with Brent crude increasing from $76.01/bbl last Friday to $88.10/bbl this Friday, while markets continue to price a 61.4% probability of a September FOMC rate hike.