Markets

The Trump administration filed the lawsuit Tuesday ahead of UC Regents plans to price $1.93 billion in revenue bonds.

While broader economic risks remain, market dynamics are being driven by supply, demand and income generation, rather than macro headlines, said Pat Haskell, head of the municipal bond group at BlackRock.

"Trump indicated the administration will implement additional tariffs under different authorities, and we expect the aggregate effective tariff rate to ultimately settle around 13%, largely unchanged from current levels," Nuveen strategists said.

Jeff Lipton compares The Bond Buyer's 2026 Predictions Report to his outlook series.

The Bond Buyer's 2026 Predictions Report shows professionals expect growth for the year ahead, but are cautious about changes coming to the central bank.

Bond markets believed Trump would likely keep tariffs in place in some form — even before the president made his announcement later in the afternoon — which partly explains their muted response throughout the day.

While near-term uncertainty is inevitable, the court's decision should be accretive to growth expectations and somewhat disinflationary.

The commission also approved developing a plan to refund $286 million of bonds.

Money is flowing into mutual funds and buyers are snapping up deals.

This is the sixth time in seven weeks that inflows have topped $1 billion.