Primary bond market

"The bond market breathed a sigh of relief this morning as the CPI inflation numbers came in a tad weaker than expected," said John Kerschner, global head of securitised products and portfolio manager at Janus Henderson Investors.

The second-largest public school system in Texas could ask voters to approve as much as $6.24 billion of bond authorization as soon as in May.

Despite the quiet start to the week for munis, all financial markets may feel a "heightened level of risk for rate volatility over the next few days," said Tim Iltz, a fixed income credit and market analyst at HJ Sims.

"With decent job growth in December and a downtick in the federal funds rate, the Federal Reserve will likely hold the federal funds rate steady at [its] next decision in late January," said Comerica Bank Chief Economist Bill Adams.

Average trade size continued to decline in 2025, "consistent with a market that is becoming increasingly more electronic," the MSRB said.

Los Angeles plans to price $86 million in bonds off its Proposition HHH bond measure, closing out the $1.2 billion GO authorization from 2016.

Munis are off to a "hot start" this year, said Jeremy Holtz, a portfolio manager at Income Research + Management.

In this third of a three-part 2026 municipal bond outlook series, Market Intelligence analyst Jeff Lipton explains how another year of heavy supply, surging ETF and SMA assets, climate and cyber risk, and growing use of bond insurance will drive muni market structure and strategy for both sell-side and buy-side stakeholders.

The Nashville Metropolitan Airport Authority is issuing municipal bonds to finance upgrades to an airport bulging at the seams after rapid traffic growth.

Surprisingly, the expected surge in net supply last year did not elicit a major repricing in the muni market, said Pat Luby, head of municipal strategy at CreditSights.

Boys Town, Nebraska, home of a high-profile sanctuary for troubled kids, heads into the bond market after a two-notch downgrade and recent abuse claims.

Confidence in the muni market is "well placed," said Matt Fabian, president of Municipal Market Analytics.

Improved risk sentiment after the capture of Venezuelan President Nicolás Maduro helped pull investors into all markets and munis are a "beneficiary" of that shift, said James Pruskowski, an investor and market strategist.

The Maine Municipal Bond Bank is bringing back its transportation revenue bond program, with a few changes to bolster the bonds' credit. 

With the muni calendar "heating up" ahead of another projected year of record issuance, Jeff Lipton, The Bond Buyer's market intelligence strategist, expects "investor demand to comfortably digest the new supply given reinvestment needs and compelling yield and income opportunities."

Oregon transportation bond payments protected even if tax repeal succeeds, rating agencies say.

Municipal bond issuers are on tap to sell about $6 billion of new issues in early January, but there should be plenty of money from maturing issues and interest payments to easily absorb that amount, as well as volume going forward, says Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

The Federal Open Market Committee meeting minutes showed the decision was closer than the vote indicated, with "a few" voters suggesting they would have supported no change at the meeting.

The muni credit market has experienced headwinds this year, including "potential federal funding cuts, the impact of tariffs and sector-specific pressures," said Goldman Sachs strategists

The New York State Thruway Authority's $848 million refunding features a voluntary tender process.