Takeaways by Bloomberg AI
- US states and local governments have sold a record amount of debt for the second year in a row, borrowing over $500 billion in the municipal market in 2025.
- The unprecedented issuance has depressed muni returns, especially for long-dated debt, with muni bonds underperforming compared to Treasuries and US corporate bonds.
- Next year could keep up the strong pace, with one analyst expecting sales to reach $600 billion in 2026 due to a strong economy and relatively stable interest rates.
Bloomberg Markets
By Elizabeth Rembert
November 7, 2025