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24th August 2026

Municipal market update

This week, the volatile treasury market took center stage, as the Trump Administration battled market fears over the prolonged conflict with Iran, inflation and world trade, as well as record setting US deficits and borrowing needs.

On the supply side, this week's tax-exempt calendar declines to $12.23 billion from $15.84 billion, though it remains above the year-to-date weekly average of $10.60 billion.

Overall, the Treasury market is fragile, searching for stability in an uncertain world. This narrative was reflected in the long treasury bond, which hit a 20 year high on Tuesday and led the Treasury Secretary to announce an increased buyback program to improve liquidity and lower rates. The subsequent rally was short lived, and the Long Bond gave up most of the gains by Friday’s close, as traders questioned the effectiveness of the proposed plan. (Please see our extended "Carlos's Commentary" for additional color).

As we start the week, municipal technicals remain supportive, with Lipper reporting inflows of $838 million, and reinvestment needs high. On the supply side, this week's tax-exempt calendar declines to $12.23 billion from $15.84 billion, though it remains above the year-to-date weekly average of $10.60 billion. Elevated bid-wanted volume and dealer inventories were absorbed without material dislocation, and the secondary market firmed alongside the primary calendar into the end of the week. As illustrated below, MMD underperformed treasuries on the long end amidst general weakness.

Cabrera will serve as Co-Manager on the State of California’s $2.8 billion Various Purpose General Obligation & Refunding Bonds, the City of Philadelphia’s $235 million Gas Works Revenue Refunding Bonds, and Arlington Independent School District’s $120 million Unlimited Tax School Building Bonds. The upcoming negotiated calendar is led by several large state general obligation, healthcare, water and power, and school district credits. The three largest transactions on this week’s calendar include the following:

  • $2.8 billion State of California Various Purpose General Obligation & Refunding Bonds

  • $800 million SSM Health Care Corporation Taxable Bonds

  • $600 million School District of Philadelphia Tax and Revenue Anticipation Notes

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17th August 2026

Municipal market update

Municipals were stable to slightly firmer for the week ending August 14, absorbing $12 billion in supply, against a volatile Treasury backdrop.

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