Municipal bond market monthly brief

Municipal bonds faced a challenging March, with indices broadly negative for the month even as year-to-date results held up better in shorter-duration and high-yield segments. After a strong start to 2026, demand has begun to cool in the face of rising uncertainty, while supply remains elevated at record levels, making investor appetite an important driver of performance this year.

Yet beneath the headline volatility, municipal credit fundamentals continue to look resilient, helping support the long-term case for the asset class. The recent pullback has also improved valuations, leaving munis looking relatively attractive versus other fixed income sectors and asset classes.

For deeper insight on these dynamics and the outlook for 2026, advisors can turn to this month’s Municipal Bond Market Brief and Ben Barber’s discussion on the Talking Markets podcast.