Municipals Weekly: Add MOUre duration before Fall rally

Research evidence excerpt

Municipals Weekly: Add MOUre duration before Fall rally

l Research Strategist

adjust our overall view and strategies during the summer. Yet, the developments this BofAS

week make us more comfortable adding long duration muni positions in anticipation of a jlombardi3@bofa.com

good market rally during the Fall, especially for long duration bonds. Sophie Yan

Municipal Research Strategist

BofAS

On credit, we note that oil’s price decline, if it holds, will lower input prices for the sophie.yan@bofa.com

transportation and airport sectors, as well as public power utilities – a credit positive. It John Reilly

will also ease some cost pressures in high oil consumption states. However, it will also Municipal Research Strategist BofAS

lower oil-related tax collections for producing states (though that will vary state-to-state john.reilly2@bofa.com

given differences in tax structures, production and state-specific wellhead prices). See Team Page for List of Analysts

Additionally, with the potential to ease inflation, it may also lower state and local sales

tax collections. Of course, time will tell if the MOU leads to a lasting peace in the region

Recent Municipals Research

and acts as a precursor to return to a pre-war Strait environment.

Municipals Educational Series: Primer on

Key market figures Municipal Bonds 17 June 2026

Supply: YTD issuance as of 17 June totals $277.8bn, up 3% y/y. New money is flat y/y Municipals Weekly: Sideways through

while refundings are up 11% y/y. See Exhibit 5. We expect $600bn of supply in 2026 summer 12 June 2026

against $701bn of principal redemptions and coupon payments. See Exhibit 7.

Municipals Weekly: Rel val out long 05 June

(continued on next page) 2026

Municipals Weekly: Summer internals anchor

munis amid macro uncertainty 29 May 2026