The $4 trillion market is being pressured by rising Treasury yields and heavy new issuance during a month that is عادة one of its strongest seasonal periods.
US municipal bonds are reportedly on course for their worst July since 2003, a sharp reversal in what is typically one of the friendliest months of the year for the $4 trillion market. The reported weakness is being driven by rising Treasury yields and a wave of new bond issuance, two forces that can weigh on municipal debt prices by making borrowing costs less attractive and increasing supply for investors to absorb.