28th September 2026
Municipal market update
Municipals extended their selloff last week underperforming Treasuries as a volatile rate backdrop collided with a less favorable seasonal technical environment. Through the summer, steady fund inflows and reinvestment dollars kept municipals resilient despite the geopolitical and economic headlines driving swings in Treasuries. With that support now fading, the AAA MMD scale was cut in every session, with the heaviest pressure inside ten years.