Volume in the tax-exempt market should jump back to pre-holiday levels this week, despite several days of municipal bond underperformance in the face of a powerful rally in Treasuries.

Industry estimates predict that muni issuance should total $9.60 billion, versus a revised $3.73 billion last week. The recovery in volume shows a muni bond market that continues to feed on strong investor demand for paper even at historically low yields, as well as an issuer community encouraged to refinance older debt.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.