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26th January 2026

Municipal market update

While the FOMC will meet this week, the market implied probability of any interest rate cut is negligible, however supply is subdued with a negotiated calendar of less than $4 billion.

Municipal bond issuance is projected to reach approximately $3.7 billion this week, a decrease from $11.2 billion last week.

Last week saw significant yield hikes on the long end of the MMD curve compared with mid hikes on the short to mid-section of the curve. This further steepened the yield curve, with the 30-year now 163 basis points over the 10-year, more than double the 10-year average. This same ratio has increased by 19 basis points since the start of December.

Lipper reported $994 million in fund inflows for the week ending January 23, down from $1.80 billion the prior week as demand continued to be supportive of the market. The SIFMA Municipal Swap Index reset to 1.31%, up 3 basis points from the previous week of 1.28%.

Municipal bond issuance is projected to reach approximately $3.7 billion this week, a decrease from $11.2 billion last week. Cabrera will serve as Co-Manager on the City of Yonkers’ General Obligation Series 2026A (A2/A+/NR/NR)

Some of the week’s largest transactions include the following:

  • $675.0 million The Black Belt Energy Gas District Gas Project Revenue Bonds, 2026 Series B (NR/NR/NR/NR)

  • $269.7 million Connecticut Housing Finance Authority Housing Mortgage Finance Program Bonds 2026 Subseries A-2 Federally Taxable Social Bonds (Aaa/AAA/NR/NR)

  • $245.9 million Miami-Dade County Industrial Development Authority Student Housing Revenue Bonds (PRG - Casa Properties LLC Project) (NR/BB+/NR/NR)

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