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29th June 2026

Municipal market update

Municipal bonds underperformed last week, which was largely expected given the volatility seen the prior week. This week, however, munis are expected to perform well as July reinvestment monies are outpacing current supply.

The SIFMA Municipal Swap Index reset to 2.67%, 8 basis points above the prior week.

Visible supply starts the week at $12.7 billion, below the year-to-date average of $14.9 billion, providing a supportive technical backdrop. Investor demand remains strong, with Lipper reporting a tenth consecutive week of inflows into municipal bond funds.

Trade tensions have resurfaced after President Trump threatened to impose 100% tariffs on imports from countries that apply digital services taxes, adding pressure on European trade partners. Attention is also turning to the June U.S. payroll report, expected July 2, with forecasts calling for job growth of around 200,000, up from 172,000 for May, and with the unemployment rate holding steady at 4.3%. Gains are anticipated to be driven by government hiring, healthcare, and leisure and hospitality related to the World Cup.

The SIFMA Municipal Swap Index reset to 2.67%, 8 basis points above the prior week.

This week, Cabrera will serve as Senior Manager on $221.54 million Grand Prairie Independent School District Unlimited Tax Refunding Bonds, Series 2026A & B and Co-Manager on $1.442 billion City of Los Angeles 2026 Tax and Revenue Anticipation Notes and $223.15 million Collin County Limited Tax Permanent Improvement Bonds, Series 2026. The three largest transactions of this week include the following:

  • $920 million Black Belt Energy Gas District Gas Project Revenue Bonds, 2026 Series G (Aa2/NR/NR/NR)

  • $429 million San Diego Public Facilities Financing Authority Senior Water Revenue Bonds, Series 2026A (Aa3/NR/AA-/NR)

  • $298 million Massachusetts Development Finance Agency Revenue Bonds (NR/BB+/NR/NR)

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20th July 2026

Municipal market update

MMD underperformed USTs this week, with muni yields rising 6–12 bps across the curve while Treasury yields were flat to 5 bps lower.

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