Weekly Fixed Income Insights
Track what matters in fixed income: Macro news, policy moves and developments in the municipal and corporate markets.
FOMC Recap
April 30, 2026
Fixed income portfolio manager Kevin Lynyak recaps the FOMC meeting and bond market reaction. Listen now:
Warsh Delay: What, Now What, So What for Rates
April 22, 2026
Fixed income portfolio manager Kevin Lynyak shares his insights into the current bond market. Listen now:
May 12, 2026
Macro update
The U.S. economy added 115,000 jobs in April, above recessionary levels but indicative of a moderating labor market. The unemployment rate held steady at 4.3%, reinforcing the view that labor conditions remain relatively stable despite elevated interest rates (Bloomberg, 5/8/26).
Treasurys posted modest gains last week as the curve bull flattened. The 10-year Treasury yield declined two basis points (bps) to 4.35%, while the 30-year yield fell two bps to 4.93%. The two-year Treasury yield rose slightly to 3.88% (Bloomberg, 5/8/2026).
Money-market funds attracted approximately $122 billion last week, the largest weekly inflow since 2020, highlighting continued investor demand for short-duration assets and elevated cash yields (Lipper, 5/8/2026).
West Texas Intermediate crude oil declined more than 7% last week amid easing geopolitical concerns and shifting supply expectations. Industrial metals generally moved higher alongside improved risk sentiment (Bloomberg, 5/8/2026).
Markets will likely focus on April CPI and PPI data this week, along with retail sales and jobless claims. Consensus expectations point to firmer inflation readings, which could influence expectations for Fed policy and the timing of future rate cuts (Bloomberg, 5/8/2026).
Municipal bond update
AAA municipal yields were slightly lower to unchanged across the curve last week. Two- and five-year yields dipped two bps and were unchanged, respectively, while 10- and 30-year yields were both two bps lower. This minimal price action left these benchmarks at 2.45%, 2.60%, 2.96% and 4.31%, respectively (LSEG, 5/8/2026).
Five to 20-year A-rated muni yields closed last week ranging from 2.80% to 4.28%, with related taxable-equivalent yields ranging from 4.73% to 7.23%, assuming a combined federal tax rate of 40.8% (Parametric, LSEG, 5/8/2026).
Muni mutual funds saw massive inflows last week, at $1.8 billion. ETFs gained $653 million and open-end funds captured $1.2 billion (Lipper, JPMorgan, 5/6/2026).
Tax-exempts performed in line with Treasurys last week, with the Bloomberg Municipal Bond Index gaining 0.20%, compared to a 0.19% decrease for the Bloomberg US Treasury Index. Munis are now up 1.18% year to date (YTD), and Treasurys are up 0.19% (Bloomberg, 5/8/2026).
Muni issuance maintains its $10 billion weekly trend line this week, with a second week of $12 billion scheduled to enter the primary market (Ipreo, 5/8/2026).
Municipal Index Yield to Worst
Sources: LSEG, Parametric, 5/12/2026. 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
The ICE BofA 1-10 Year US Corporate Index returned 0.22% for the week and 0.27% month to date. The index outperformed like-duration Treasurys by 0.09% for the week and by 0.12% month to date (Bloomberg, 5/8/2026).
U.S. investment-grade (IG) corporate yields decreased across the curve last week. Two-, five- and 10-year yields fell one, two and three bps, respectively. Corporate yields are higher YTD, with two-, five- and 10-year yields up 35, 30 and 22 bps, respectively (Bloomberg, 5/8/2026).
IG mutual funds and ETFs experienced inflows of $12.8 billion, an increase from the previous week’s inflows of $3.7 billion. Corporate-only funds experienced inflows of $1.7 billion, following the previous week’s inflows of $78 million (JPMorgan, 5/8/2026).
Corporate one- to 10-year IG bond yields, which have increased 32 bps YTD, ended last week at 4.8% (Bloomberg, 5/8/2026).
Corporate Index Yield to Worst
Source: Bloomberg as of 5/12/2026. 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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