- State and local debt recovered from historic rout in March
- 2020 issuance reached $457 billion, driven by taxable sales
The $3.9 trillion U.S. municipal bond market is on track to finish 2020 with returns of about 5.2%, marking the seventh straight year of gains and showcasing the rebound from a record selloff in March as fears about the pandemic’s fiscal fallout rattled investors.
Supply
State and local governments issued about $457 billion of long-term bonds in 2020 — 12.5% more than what was sold in 2019 — with the increase driven by a sharp jump in the sale of taxable bonds, according to data compiled by Bloomberg. This year’s supply exceeds the previous record reached in 2016.
Bloomberg Markets
By Danielle Moran
December 30, 2020, 7:42 AM PST