Markets

Schools and governments turn to bonds to cover payouts in the wake of a California law that temporarily lifted the statute of limitations on sex abuse claims.

The top suite of firms oversaw deals amounting to more than $139 billion par value across 58% of the market.

Munis are "under pressure as elevated primary supply collides with lackluster seasonal reinvestment flows, leaving dealers heavy and buyers selective," said James Pruskowski, an investor and market strategist.

As the market continues to contend with the surge in issuance, investors still have a significant amount of cash that can be put to work, said Jeremy Holtz, a portfolio manager at Income Research + Management.

Once considered as a promising prospect for investors, "green" bonds have been plagued by defaults, a concern for those who study the underlying technologies.

The top 10 underwriters for the first half of the year brought in more than $203 billion across nearly 2,000 issues.

As always, economists had disparate interpretations of the consumer price index, with none expecting a July rate cut. And tariff questions remain unanswered.

Prices for some bonds issued for Florida's express train have fallen sharply since Friday.

"The muni market seemed to ignore Treasuries [last] week, marching to its own beat," said Birch Creek strategists.

The top issuers for the first half of 2025 put out a combined 89 issuances amounting to more than $39 billion in par value.