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27th April 2026

Municipal market update

The front end of the municipal curve remained under pressure last week, with short-term yields rising by as much as 6 basis points as investors continued to move out the curve in search of more attractive relative value. Primary market activity highlighted some of this softness, with several deals in the market last week seeing weaker demand on shorter maturities with meaningful balances remaining.

The SIFMA Municipal SWAP Index reset to 3.62%, just 3 basis points below the prior week.

Beyond the front end, municipals saw more limited movement and maintained a steady tone, outperforming Treasuries. The Treasury market continued to trade in a wide range as investors reacted to the U.S.-Iran war ceasefire extension, strong corporate earnings, and the Department of Justice ending its probe into Jerome Powell, which was viewed as a clearing path for leadership transition at the Fed this year. Investors positioned into risk assets, pushing Treasury yields higher for the week and lifting the S&P 500 to all-time highs. However, momentum faded over the weekend on news of President Trump cancelling a planned trip by his top officials to Pakistan for peace talks, and Tehran announcing they won’t negotiate under threat.

Looking ahead, investors will remain focused on geopolitical developments while shifting attention to the FOMC meeting on Wednesday. Municipal new issue supply is expected to be lighter at approximately $8.5 billion and May reinvestment dollars should begin to find their way back into the market, providing near-term support. Municipal bond funds recorded $1.0 billion of inflows in the latest weekly data. The SIFMA Municipal SWAP Index reset to 3.62%, just 3 basis points below the prior week.

The three largest transactions of this week include:

  • $1.3 billion MA Development Financing Agency, Revenue Bonds (Dana-Farber Cancer Institute), Series Q (A2/A/-)

  • $1.1 billion Energy Northwest, Revenue Bonds, Series 2026-A (Aa2/AA-/AA)

  • $650.0 million Los Angeles Unified School District, General Obligation Bonds (Aa2/-/AAA/AAA)

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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.

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