Municipal Bond Market Insight - Why 5% is Noteworthy for Muni Investors

What were the key takeaways from last month’s numbers? Our muni specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for muni investors.

Key takeaways from the latest edition:

Municipal yields reached historically elevated levels, with 20-year yields higher than today’s levels just 5% of the time over the past decade.

Heavy issuance and declining reinvestment flows created a meaningful near-term supply-demand imbalance that collided with the conflict in Iran.

Steep yield curves and improved relative value favor extending duration into intermediate and long maturities.

Despite volatility and delayed Fed easing expectations, a low-to-mid-single-digit return is our base case for 2026.