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US Municipal Bonds Face Pressure Amid Rising Yields

3/21/2026

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Story summary
  • The United States municipal bond market is under pressure from rising yields and inflation concerns tied to the ongoing war in the Middle East.
  • Benchmark yields rose as much as seven basis points, signaling a potentially worst month for munis in a year.
  • Municipal funds posted their first outflow since January despite inflows of $1.8 billion.
  • Illinois leads the new-issue calendar estimated at $10.67 billion.