Buy side

UST yields rose across the curve in response to the employment report with the two-year rising nearly 10 basis points while municipals largely ignored the moves and ratios fell as a result.

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 updated document also addresses disclosure relating to cybersecurity.

The selloff highlights the lack of accurate pricing and credit information across the speculative-grade muni market.

"The market itself should want to look at this because no one wants to give the perception of impropriety," said an investor of Stefanik's allegation that Harvard withheld material information regarding its ongoing conflict with the Trump administration.

The rock-bottom prices show the risks of a high-yield market where liquidity is famously limited.

In the first quarter of this year, 18.6% of new-issue volume in the market was traded electronically, up from 17.3% last year, according to data from Coalition Greenwich.

BlackRock strategists are "constructive" on munis for multiple reasons and think the current market environment presents itself as a buying opportunity, especially as issuance continues to be elevated and provides "ample ability" to source bonds in the primary market.

Hospital spreads have widened as investors wait to see how the One Big Beautiful Bill will impact providers.

"The broader themes from the demand perspective are that it's choppy and people are not necessarily jumping into high-yield munis with both feet," said First Eagle's John Miller.