Jessica Lerner

Munis were weaker on Tuesday, as U.S. Treasuries cheapened and equities ended higher. Muni yields were cut by two to five basis points, depending on the scale.

Tender activity has risen between 2019 and 2024, with muni issuers executing more than $48 billion, according to the Government Finance Officers Association.

"We do have to be concerned about the deficit and the growth of our debt," said Mikhail Foux, head of municipal research and strategy at Barclays.

Munis sold off Thursday as the weakness over the past several days culminated in the largest cuts in months amid ongoing tensions in the Middle East and rising oil prices.

The amount of bonds wrapped by insurance declined 18% year-over-year in the first six months of 2026, despite another year of record supply.

Munis were steady to slightly firmer in spots Friday, while short-term U.S. Treasuries saw small gains and equities ended mixed.

Processing Content Supply dropped in July as the Federal Open Market Committee meeting-induced fall in weekly supply and the end of the fiscal year for some states led to a slowdown.

It was the "right move" for issuers that could accelerate and take advantage of the rally, said Dora Lee, partner and director of research at Belle Haven.

It has been impressive that the market can clear a lot of the deals, said Tim McGregor, managing partner at Riverbend Capital Advisors.

Bryce Pickering, head of municipal trading for the First Eagle municipal credit team. First Eagle Investments