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5th January 2026

Municipal market update

The municipal and broader financial markets are entering the first full week of 2026 under a cloud of significant uncertainty following the U.S. military intervention in Venezuela over the weekend. While the first week of January has limited economic releases scheduled, the conflicting statements from FOMC members have created uncertainty in the municipal market and will certainly increase the scrutiny of any releases, such as the December employment report later this week.

The SIFMA Municipal Swap Index reset to 2.36%, down 96 basis points from the previous week at 3.32%.

During the last week of 2025, the MMD curve steepened while the treasury curve saw near-uniform yield increases. Lipper reported $679 million in fund inflows for the week ending January 1, down from $851 million the prior week. Looking ahead, Bloomberg forecasts municipal bond supply for 2026 in the range of $625–$650 billion, representing a $25–$50 billion increase over the record volume of 2025, with refunding’s expected to comprise a significant portion of issuance.

Municipal bond issuance is projected to reach approximately $5.9 billion this week, an increase from $34.02 million last week. Cabrera will be serving as co-manager on the largest national transaction this week, $847.94 million New York Thruway Authority General Revenue Junior Indebtedness Refunding Obligations 2026A (A1/A/NR/NR), both of which are highlighted below.

The week’s largest transactions include the following:

  • $847.94 million New York Thruway Authority General Revenue Junior Indebtedness Refunding Obligations 2026A (A1/A/NR/NR)*

  • $814.60 million The Black Belt Energy Gas District Gas Project Revenue Bonds, 2025 Series F (NR/AA-/NR/NR)

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12th January 2026

Municipal market update

Over the weekend, news was released that the Department of Justice served the Federal Reserve with grand jury subpoenas threatening criminal indictment.

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