Municipal Market Update – June 2020

The municipal market calmed down in June after months of volatility.  The one-year tax-exempt AAA rate increased slightly to 0.25% from its all-time low in May 2020. Municipal supply picked up in June with issuance of $45.8 billion, a 25% increase from June 2019. The increased supply is likely a result of continued low interest rates and delayed financings related to COVID-19 that were waiting for reduced volatility. The Fed’s main policy approach continues to rely on forward guidance, indicating that rates may potentially remain near zero through 2022.

US Treasury Yield Curve

Our Municipal Market Update is data-driven, one page sheet that is intended to give you an overview of key interest rates – floating as well as the credit spreads of key local and state entities with data as of June 30, 2020. It is written for those making credit and investment related decisions for municipalities and non-profit institutions. If you have additional questions or would like to learn more about our municipal advisory and investment banking services, visit our Municipal Advisory page and contact Michael Stone, CFA.

Click here to access our Municipal Market Update.