Story perspectives

July Market Surge: Tariffs, Fed Rates, and OBBBA Impact

8/13/2025

48 10

Summary

Story summary

July's key themes were tariffs, Federal Reserve policy, and the One Big Beautiful Bill Act (OBBBA).
The FOMC maintained the federal funds rate, with stable inflation and job data causing a 16 basis point rise in Treasury yields.
The muni market thrived under OBBBA, preserving tax exemptions and experiencing robust reinvestment activity.
Muni yields steepened, with 5-year yields decreasing by 20 bps and longer yields increasing, widening the 1-30 year maturity gap by 37 bps.

1 of 1

Story summary

July's key themes were tariffs, Federal Reserve policy, and the One Big Beautiful Bill Act (OBBBA).
The FOMC maintained the federal funds rate, with stable inflation and job data causing a 16 basis point rise in Treasury yields.
The muni market thrived under OBBBA, preserving tax exemptions and experiencing robust reinvestment activity.
Muni yields steepened, with 5-year yields decreasing by 20 bps and longer yields increasing, widening the 1-30 year maturity gap by 37 bps.