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• Volatility continues.
• “Investable time for muni bonds.”
• Investors can take advantage of high yields.

Munis were narrowly mixed on Tuesday, as U.S. Treasuries richened and equities ended higher.
Muni yields were changed up to two basis points, depending on the scale. UST yields richened by six to seven basis points.

UST investors have been navigating volatility from the war in Iran and the national deficit for months, said Tom Kozlik, managing director and head of public policy and municipal strategy at HilltopSecurities.

Therefore, Kozlik doesn’t view the strength in UST yields as a positive reaction to the tariffs dominating the news this week, but as part of the “bigger picture of back-and-forth volatility that’s been going on,” he said.

Although muni investors are also navigating uncertainty from the Federal Open Market Committee and the war, Kozlik said, “this is an investable time for municipal bonds, and investors should take advantage of where yields are.”

New-issue market
In the primary market Tuesday, Morgan Stanley priced for the Philadelphia School District (MIG 1//F1+/) $591.91 million of tax and revenue anticipation notes, Series B of 2026-2027, with 5s of 6/2027 at 2.90%, noncall.

BofA Securities priced for the Metropolitan Water Reclamation District of Greater Chicago (/AA+/AAA/) $390.46 million of general obligation bonds. The first tranche, $123.4 million of Series 2026A green GO limited tax capital improvement bonds, saw 5s of 12/2030 at 2.94%, 5s of 2039 at 3.98%, 5.25s of 2041 at 4.13% and 5s of 2046 at 4.46%, callable 12/2036.

The second tranche, $13.83 million of Series 2026B green GO unlimited tax capital improvement bonds, saw 5s of 12/2036 at 3.57% and 5s of 2037 at 3.72%, callable 12/2036.

The third tranche, $193.45 million of Series 2026C GO unlimited tax refunding bonds, saw 5s of 12/2026 at 2.63%, 5s of 2031 at 3.02%, 5s of 2044 at 4.34% and 5s of 2045 at 4.40%, callable 12/2036.

The fourth tranche, $18.57 million of Series 2026D GO limited tax refunding bonds, saw 5s of 12/2026 at 2.63% and 5s of 2031 at 3.02%, noncall.

The fifth tranche, $41.22 million of Series 2026E GO unlimited tax refunding bonds (alternate revenue source), saw 5s of 12/2026 at 2.63%, 5s of 2031 at 3.02%, 5s of 2036 at 3.57%, 5s of 2041 at 4.15% and 5s of 2045 at 4.40%, callable 12/2036.

In the competitive market, Miami-Dade County, Florida, (Aa2//AA+/) sold to BofA Securities $265.96 million of Jackson Health System public facilities revenue bonds, with 5s of 6/2038 at 3.92%, 5s of 2041 at 4.26%, 5s of 2046 at 4.55%, 5s of 2051 at 4.83% and 5s of 2056 at par, callable 6/2035.