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

01 July 2026

J.P. Morgan Municipal Morning

Intelligence

Munis richen despite near record June tax-exempt

volume on record prepay supply. NYC budget set.

Tax-Exempt Market Wrap Securitized Products & Public

Finance Municipals Strategy

– HG scale changes reflected municipal market outperformance as 2yr levels were AC Peter DeGroot

bumped by 1bp, lowered by 2bps in 19yr and longer, but cut by 1-2bps in 7-8yrs.

(1-212) 834-7293

These moves reflect significant outperformance versus the 7-9bps selloff in the peter.degroot@jpmorgan.com

UST market, given sustained fund inflows ($453mn on the day, 53 consecutive Ye Tian

sessions) and anticipation of heavy July reinvestment ($45bn, 2nd highest of the (1-212) 834-3051

year), with little new issue and lighter BWICs ($2bn, -10%) to choose from given the ye.tian@jpmorgan.com

limited holiday calendar. Roisin A Gargan

(1-212) 834-7010

– Muni funds again posted inflows of $453mn yesterday, extending the positive roisin.gargan@jpmchase.com

streak to 53 sessions ($24.4bn in total). ETFs posted inflows of $193mn ($86mn J.P. Morgan Securities LLC

active/$107mn passive), alongside $260mn into open-end funds.

Figure 1: Trailing 20-session estimated fund Figure 2: Daily municipal fund flow

flow observations

Municipal fund flows ($mn)

1 Day Flow 3 Day Flow 5 Day Flow 7 Day Flow YTD Flow

800 Trailing 20 session JPM estimated fund flow All Muni 453 1,297 2,225 2,938 50,900

ETF Flow Open-end 260 390 566 762 22,321

600 Open-end Flow ETFActive ETF 19386 343906 1,659650 2,176964 11,80528,579

20 Day Avg Passive ETF 107 564 1,009 1,212 16,774

400 HY Muni 100 194 299 378 7,678

Open-end 44 84 120 158 4,234

200 ETF 56 110 179 220 3,444

LT Muni 353 1,005 1,668 1,996 34,464