Takeaways by Bloomberg AI
- Municipal bond investors face an uphill battle this fall season due to technical headwinds, including a deluge of new state and local government debt.
- Roughly $10.5 billion of new issuance is expected over the next 30 days, with actual supply likely to be much greater, while local governments pay bondholders $22 billion in redemptions this month.
- Retail investors could help the muni market, as they are expected to return from summer vacations and put money to work, potentially driven by cuts from the Federal Reserve or volatility in stocks.
Bloomberg Markets
By Elizabeth Rembert
September 8, 2025