30th March 2026
Municipal market update
The municipal market continued to be weighed down by geopolitical tensions surrounding the U.S.–Iran conflict, rising oil prices, and a soft Treasury auction – all of which drove volatility across fixed income markets. After an early-week rally tied to a temporary pause in U.S. strikes, markets reversed sharply on Tuesday amid reports that the U.S. may deploy ground forces. Following a poorly received 2-year Treasury auction that same day, yields moved drastically higher with MMD rising anywhere between 7 to 12 bps across the curve. Treasury yields ultimately finished the week modestly higher, with the 10-year at 4.44% and the 2-year around 3.88%, though intraweek swings were significant.