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9th November 2026

Municipal market update

Municipal yields declined for a second straight week alongside lower Treasury yields, with the AAA MMD scale moving 6 to 15bps lower across the curve and the largest declines in the 10- and 20-year area.

On the week, MMD yields fell 7bps in 2-years, 8bps in 5-years, 13bps in 10-years, 8bps in 20-years, and 4bps in 30-years.

Treasuries rallied midweek as oil prices fell sharply following the midterm elections and a selloff in equities, led by technology stocks, drove a flight-to-quality bid, with Brent crude closing near $98, down from roughly $118 the prior week. Yields edged higher on Friday after October payrolls came in well above expectations at 165K versus a 70K consensus and the unemployment rate dipped to 4.1%, keeping the Fed’s December meeting in focus ahead of this week’s CPI release. Municipals outperformed Treasuries from 5 years and longer, with new issues broadly oversubscribed, while fund inflows slowed to $287 million from $1.7 billion the prior week as the market absorbed roughly $9.9 billion of supply. Municipal-to-Treasury ratios ended the week near 58%, 67%, and 89% in 2, 10, and 30 years, respectively, with ratios inside 10 years below their 3-year averages and the 2-year near the low end of its 1-year range.

With the bond market closed Wednesday for Veterans Day, primary-market supply is expected to slow to approximately $5.4 billion, with $4.0 billion negotiated and $1.3 billion competitive. Cabrera will serve as Co-Manager on the Metropolitan Atlanta Rapid Transit Authority’s $243 million issue. The three largest negotiated transactions this week include:

• $762.8 million Commonwealth of Massachusetts General Obligation Bonds, Consolidated Loan of 2026, Series I & General Obligation Refunding Bonds, 2026 Series D

• $450.1 million Pennsylvania Housing Finance Agency Single Family Mortgage Revenue Bonds, Series 2026-155A (Non-AMT) (Social Bonds) & Series 2026-155B (Taxable)

• $422.0 million City of Riviera Beach Utility Special District Water and Sewer Revenue Bonds, Series 2026A-1 & Series 2026A-2

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2nd November 2026

Municipal market update

Municipal yields declined last week alongside lower Treasury yields, with the AAA MMD scale moving 4 to 13bps lower across the curve and the largest change in the 10-year area.

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