The municipal-bond market’s biggest underwriter expects an increase in debt sales in October after the asset class saw state and local government borrowing slow this month.
Bank of America Corp. strategists led by Yingchen Li and Ian Rogow are forecasting municipal issuance of $58 billion in October, according to a research note published Friday.
Strategists at the firm, which is the top underwriter of state and local debt, are expecting the market to resume its busy pace of debt sales. Muni bond sales are on track to fall about 6% this month compared to the prior year, with issuance totaling $44 billion so far, according to data compiled by Bloomberg. Some municipalities may have held off on borrowing in September in the hopes that the Federal Reserve would cut interest rates.
Bloomberg Markets
By Faith DiBiagio
September 29, 2025