J.P. Morgan Municipal Morning Intelligence

Research evidence excerpt

J.P. Morgan Municipal Morning Intelligence

J P M O R G A N Global Markets Strategy

18 June 2026

J.P. Morgan Municipal Morning

Intelligence

Next week’s volume appears manageable given fund

flow momentum and expected range-bound rates.

Tax-Exempt Market Wrap Securitized Products & Public

Finance Municipals Strategy

Peter DeGroot AC

– This week saw long-term tax-exempt supply of $9bn, 129% of the five-year (1-212) 834-7293

peter.degroot@jpmorgan.com

average and +$1bn versus last year, as prepay deals continued to push supply

Ye Tian

above expectations. Despite the added volume, municipals broadly

(1-212) 834-3051

outperformed given sustained inflows (44 consecutive days) and the arrival of ye.tian@jpmorgan.com

mid-June reinvestment capital. Roisin A Gargan

– Next week we expect municipals will perform in line with the UST market (1-212) 834-7010

roisin.gargan@jpmchase.com

given range-bound rates, as we project a manageable $11bn in long-term tax- J.P. Morgan Securities LLC

exempt supply. Volume in this range would be 16% higher than the five-week

average ($9.5bn) but equal to the equivalent week last year. Naturally, as we saw

over the past few weeks, there is risk that the calendar grows throughout the

week. Additionally, while this week saw orderly markets as Warsh successfully

chaired his first FOMC meeting and it appears a deal to extend the cease fire and

restart the flow of oil through the Strait is at hand, geopolitical risk remains

elevated and events could drive added rate volatility. That said, fund flow

momentum appears likely to remain intact if Treasuries hold around current

levels given elevated taxable-equivalent yields and positive YTD fund

performance, which has reinforced capital allocations into the sector.