Public finance

As the "slope of the municipal yield curve remains extremely steep and long bonds are cheap relative to U.S. Treasuries," Daryl Clements, a portfolio manager at AllianceBernstein, predicts "long municipal bonds have a long way to go until they are considered fair value."

Minnesota plans to go to market Sept. 23 with a $1.27 billion general obligation bond sale.

Despite the expected rate cut, analysts will be watching the Federal Open Market Committee's actions for other reasons.

Utilities, and the local governments and states that house data centers, are wrestling with policy questions about who should cover the costs of the projected spikes in water and electricity demand.

"This was a much-needed rally as the long end struggled throughout the year, but now has been pushed back into positive territory," said Jason Wong, vice president of municipals at AmeriVet Securities.

Infrastructure like vertiports may be financed with municipal bonds.

Lawmakers passed California Gov. Gavin Newsom's expansive energy package, including a bill to extend the state's cap-and-invest program.

The authority's borrowing apparatus is maintaining a business-as-usual approach it embarks on a massive new capital program and fends off federal cuts.

Fitch cited improved long-term liability metrics.

Tax-exempt munis, supported by USTs, are having a very good month as MMD yields are down 30 to 35 basis points out long, and both the investment-grade and high-yield indices are seeing gains of more than 2% month-to-date, Barclays strategists led by Mikhail Foux said.