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Weekly Fixed Income Insights


Track what matters in fixed income: Macro news, policy moves and developments in the municipal and corporate markets.

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Fixed income portfolio manager Kevin Lynyak shares his insights into the current bond market. Listen now:


March 10, 2026


Macro update



Investor fears over AI disruption pivoted to geopolitics last week after joint U.S. and Israel attacks on Iran. Equities declined to start the week with West Texas Intermediate crude oil jumping to more than $80 per barrel on potential global supply impacts. The front end led to increasing interest rates in response (Bloomberg, 3/6/2026).


Investment-grade (IG) corporate bond credit spreads widened last week, with technology and nonbank financials leading the market lower amid concerns around software exposure. Healthcare issuers led slowing corporate primary market activity (Bloomberg, 3/6/2026).


A higher-than-expected Producer Price Index print last week drew limited reaction, but the prices-paid component of manufacturing Institute for Supply Management did contribute to higher rates. The February payroll situation report revealed a loss of 92,000 jobs versus expectations for a 55,000 gain, and an uptick in the unemployment rate, to 4.4% versus expectations for an unchanged 4.3% reading (Bloomberg, 3/6/2026).


This week’s data calendar includes existing home sales, the Consumer Price Index, housing starts, personal income and consumption, PCE and core PCE, durable goods orders and Q4 2025 Gross Domestic Product (Bloomberg, 3/6/2026).


Municipal bond update



AAA municipal yields jumped across the curve last week. Two- and five-year yields increased 10 and 15 basis points (bps), respectively. 10-year yields increased 18 bps and 30-year yields increased nine bps. This sharp price action left these benchmarks at 2.13%, 2.25%, 2.70% and 4.26%, respectively (LSEG, 3/6/2026).


Five- to 30-year A-rated muni yields closed last week ranging from 2.43% to 4.62%, with related taxable-equivalent yields ranging from 4.10% to 7.80%, assuming a combined federal tax rate of 40.8% (Parametric, LSEG, 3/6/2026).


Muni mutual funds saw net inflows last week of $1.4 billion, with ETFs attracting $393 million and open-end funds bringing in $1 billion. This marks 15 consecutive weeks of inflows (Lipper, JPMorgan, 3/4/2026).


Tax-exempts outperformed Treasurys during the selloff last week, with the Bloomberg Municipal Bond Index decreasing 0.77%, compared with a 0.96% loss for the Bloomberg US Treasury Index. Munis are now up 1.41% year to date (YTD), compared with the Treasurys’ 0.74% gain (Bloomberg, 3/6/2026).


Muni issuance rises to $12.2 billion this week, continuing the recent $10 billion run rate (Ipreo, 3/6/2026).


Municipal Index Yield to Worst


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Sources: LSEG, Parametric, 3/10/2026. Assuming a top federal tax rate of 37%, plus 3.8% net investment income tax rate, 40.8% combined. For illustrative purposes only. It is not possible to invest directly in an index. Past performance is no guarantee of future results.



Corporate bond update



U.S. IG corporate yields rose across the curve last week. Two-, five-, and 10-year yields increased 15, 19 and 17 bps, respectively. Corporate yields are higher YTD, with two-, five- and 10-year yields up six, four and three bps, respectively (Bloomberg, 3/6/2026).


The ICE BofA 1–10 Year US Corporate Index returned -0.65% for the week and MTD. The index outperformed like-duration Treasurys by 0.08% for the week and month (Bloomberg, 3/6/2026).


IG mutual funds and ETFs experienced inflows of $7.5 billion, a decrease from the previous week’s inflows of $8.9 billion. Corporate-only funds experienced inflows of $1.2 billion, following the previous week’s inflows of $1.6 billion (JPMorgan, 3/6/2026).


Corporate one- to 10-year IG bond yields, which have increased seven bps YTD, ended last week at 4.5% (Bloomberg, 3/6/2026).



Corporate Index Yield to Worst


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Source: Bloomberg as of 3/10/2026. Past performance is no guarantee of future results. The index performance is provided for illustrative purposes only and is not meant to depict the performance of a specific investment.



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The views expressed are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Parametric and its affiliates disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Parametric are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Parametric strategy. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results. All investments are subject to the risk of loss. Prospective investors should consult with a tax or legal advisor before making any investment decision. Please refer to the Disclosure page on our website for important information about investments and risks.