Primary bond market

The muni market is poised for a strong week, Peter DeGroot wrote for J.P. Morgan, with a "manageable" new-issue calendar, near-record inflows year-to-date and July redemption money.

A number of factors are driving rate volatility, but the muni market is better positioned for a strong summer than it has been in a decade, according to Hennion & Walsh's James Pruskowski.

Municipal issuers sold $299.293 billion of bonds in the first half of 2026, up 5.2% year-over-year, according to LSEG data.

Strong offerings and the promise of July redemptions are helping munis weather a rough UST market, according to NewSquare Capital's Kim Olsan.

Separately, the Puerto Rico Oversight Board approved the second consecutive consensually agreed upon budget, balanced according to modified accrual standards.

SMAs are a "shoot now, ask questions later" type of buyer, said Dan Close, head of Nuveen's municipal fixed income team.

The U.S. and Iran have agreed to stop attacks in the Strait of Hormuz, Tim Iltz wrote for HJ Sims, but the tensions have taken a toll on oil prices.

Issuance is on pace for another year of record supply even as factors driving credit spreads change, Center for Municipal Finance Director Justin Marlowe said.

Issuance falls to an estimated $5.055 billion this week, lighter due to the holiday, and it's possible some deals will come on Monday.

The Museum of Modern Art's "preeminent" reputation has powered the New York City institution's finances. It may have boosted its municipal bond sale last week.

The muni market is closing out the month of June with the curve "more or less static" to where it was at the end of May, Kim Olsan wrote for NewSquare Capital.

Thursday was quiet in the muni market as many deals — which did pretty well upon pricing or selling — came to market earlier in the week, said Ron Banaszek, co-head of public finance and lead underwriter at Blaylock Van.

Falling oil prices sparked a rally for Treasuries. Munis took some strength from USTs, according to Jeremy Holtz of Income Research + Management.

There are a lot of "great technology solutions" out there, said Dan Silva, CEO and cofounder of Adaje.

There wasn't any one factor driving the muni market's weaker performance, FHN's Ajay Thomas said. But investors had a lot of deals from which to choose.

The BB-plus rated borrowing comes as high-yield supply remains strong in the muni market.

SWBC's Chris Brigati said he expects munis to continue to outperform Treasuries, unless USTs aggressively sell off.

The market outlook is mixed, according to Barclays strategists.

The College of the Holy Cross, enjoying rising student demand in a time when other private schools are struggling, will take out variable-rate and taxable debt.

The FOMC's hawkish tone hasn't cost munis yet, but the reaction from USTs may bring pressure, according to NewSquare Capital's Kim Olsan.