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23rd June 2025

Municipal market update

The U.S. entry into the Israel/Iran conflict in the middle east over the weekend is initially having little impact on bond and equity markets. After last week’s mixed results with worries about building escalation and the holiday-shortened week, municipal markets took direction from comments by Fed Governor Waller and the release of the FOMCs Monetary Policy Report ahead of Fed Chair Powells testimony to Congress this week.

Despite the Fed’s decision to keep rates steady at their meeting last week, officials continue to expect at least one rate cut before the year end, with some speculating that two cuts are likely. Technicals in the municipal market remain strong, even as supply forecasts for the remainder of 2025 show elevated volume, with redemptions and coupon payments keeping demand robust.

The municipal curve and US treasury yield curve steepened last week. Municipal bond fund flows remained positive for the eighth consecutive week with $110 million in inflows reported on June 19 following a decrease in pace of inflows from previous weeks. The SIFMA municipal swap index reset to 2.75% from 3.28% the previous week.

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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.

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