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

08 July 2026

J.P. Morgan Municipal Morning

Intelligence

Long muni/Corp ratio nearing three-year tights (+2

sigma) as 30yr AA corp yields hit 3-year highs. Taxable

munis also at richest levels vs corps. 2yr exempts

similarly overvalued.

Securitized Products & Public

Finance Municipals Strategy

Peter DeGroot AC

(1-212) 834-7293

peter.degroot@jpmorgan.com

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Tax-Exempt Market Wrap

– Yesterday, the HG muni scale was cut by 1-2bps in the belly (7-12yr) and long

end (24yr+), with other tenors left unchanged, outperforming the 3-5bps rise in

UST rates, amidst continued muni fund inflows ($378mn), higher BWICs

($2.4bn), and manageable new issue ($2.5bn).

– Long-end muni/UST and muni/Corp ratios have declined for five consecutive

days, with the ratio versus Treasuries compressing to the lowest level since Feb 2025.

The 30yr muni/Corp ratio is near its richest level in three years, +2 sigma rich to

1-3year horizons, as 30yr AA corporate yields hit their 3-year highs. Similarly, 2yr

ratios hit 3-year lows versus both UST and corporate bond levels.