J.P. Morgan Municipal Morning Intelligence: Munis in solid technical shape despite 2yr ratios hitting 3-year tights and 30yr AA‘s now 1.7 sigma rich vs corporates.

Research evidence excerpt

J.P. Morgan Municipal Morning Intelligence: Munis in solid technical shape despite 2yr ratios hitting 3-year tights and 30yr AA‘s now 1.7 sigma rich vs corporates.

J P M O R G A N Global Markets Strategy

02 July 2026

J.P. Morgan Municipal Morning

Intelligence

Munis in solid technical shape despite 2yr ratios hitting

3-year tights and 30yr AA’s now 1.7 sigma rich vs

corporates.

Securitized Products & Public

Finance Municipals Strategy

Peter DeGroot AC

(1-212) 834-7293

peter.degroot@jpmorgan.com

– Good morning. On Monday, Extel (formerly Institutional Investor) will open an Ye Tian

abridged voting period for the U.S. Fixed Income Research Poll. If you have found (1-212) 834-3051

ye.tian@jpmorgan.com

our work helpful, we would sincerely appreciate your 5-star support for the firm and

Roisin A Gargan

for Peter DeGroot, Ye Tian, and Roisin Gargan under the “USA: Economics & (1-212) 834-7010

Strategy/General” voting area, in the “Municipals Strategy” category. As roisin.gargan@jpmchase.com

always, thank you for your continued readership and support. We hope you have J.P. Morgan Securities LLC

a safe and enjoyable holiday weekend.

– In case you missed it, yesterday we published our Municipal Monthly Index and

Data Chartbook, featuring index performance statistics, BVAL vs. ICE pricing

comparisons and Sharpe ratio analysis.

– This week’s limited volume ($4.5bn) and the arrival of July reinvestment

($45bn expected over the full month) insulated municipal prices from

Treasury market volatility. Before the weaker-than-expected June employment

print, 2yr muni ratios hit 3yr lows and 10yr ratios moved to 1.7 sigma rich

over 1-3yr horizons.

– Even with richer ratios and significant outperformance in spread product