George Yacik

Thanks to strong technicals and the anticipated interest rate cut by the Federal Reserve at its September meeting, municipal bonds posted positive returns of 0.87% in August, reversing their losses of 0.20% in July, according to Jason Wong, vice president municipals at AmeriVet Securities.

New York issuers lead a $9 billion slate.

"We are entering a period during the summer months in which demand historically outweighs very limited supply, resulting in a supportive performance environment but more limited investment opportunities," said J. Robert Lind of Lind Capital Partners.

As the end of the first half of a so-far tumultuous 2025 approaches, several municipal bond analysts are upbeat about the rest of the year.

The Indiana Financing Authority is the biggest entry on 2025's largest negotiated calendar with $1.5 billion of Indiana University Health system revenue bonds.

A couple of "bond-friendly" economic reports released Thursday could encourage the Federal Reserve to reduce interest rates in the near future, some analysts argued.

Following a volatile April, a few municipal bond analysts are optimistic about the near-term future.

The muni market is coming out of oversold conditions, said David Litvack, a tax-exempt strategist at BofA.

The firmness in the market Monday came from a "settling down" after one of its most volatile weeks since the pandemic, said Cooper Howard of Charles Schwab.

The asset class extended its selloff last week as concerns regarding the tax-exempt status of munis continued to mount, combined with a heavy new-issue calendar and tax season selling by investors, said Jason Wong, vice president of municipals at AmeriVet Securities.