Bonds

Munis Suffer Worst Week Since March 2020 as Supply Wave Weighs

  • Ten-year muni yields surged 34 basis points this week
  • Borrowers have sold over $180 billion of bonds this year

Contractors work on a road under repair in San Mateo, California.

Photographer: David Paul Morris/Bloomberg
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The $4 trillion municipal bond market is wrapping up its worst week since early 2020 as an onslaught of issuance weighs on the debt of US states and cities.

Yields on 10-year state and local-government debt have jumped 34 basis points this week, to 2.99% on Friday, for the steepest weekly climb since March 2020, when the onset of the pandemic roiled financial markets, according to data compiled by Bloomberg.