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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.

Post mid-term elections, the bull case for bonds

November 4, 2026

Fixed income portfolio manager Kevin Lynyak discusses the bull case for bonds. Listen now:

The Fed: Tightening Without Urgency

November 3, 2026

Fixed income portfolio manager Kevin Lynyak  recaps the last FOMC meeting. Listen now:


November 10, 2026


Macro update



Treasury yields moved lower across the curve last week despite stronger-than-expected employment data. The two-year Treasury yield declined eight bps to 4.51%, the 10-year fell seven bps to 4.86% and the 30-year declined four bps to 5.26%. Equities weakened following the midterm elections, with the Nasdaq declining 3.4% and the S&P 500® falling 2.7%, while lower oil prices and inflation expectations supported demand for duration (Bloomberg, 11/6/2026).


Labor-market data reinforced expectations for additional Federal Reserve (Fed) tightening. October nonfarm payrolls increased by 165,000, well above expectations for 70,000, while prior months were revised higher by a combined 84,000 jobs. The unemployment rate declined to 4.1% and average hourly earnings increased 0.4% month over month, keeping inflation at the center of the Fed's policy outlook (Bloomberg, 11/6/2026).


Investment-grade credit markets remained resilient despite equity market weakness and heavy new issuance. About $74 billion of investment-grade corporate bonds priced last week, largely from technology-related issuers, while higher-quality spreads remained relatively stable. Treasury estimates suggest approximately $2.7 trillion of AI-related capital raising from 2025 through 2027, including $1.5 trillion of debt, with financing pressures remaining largely concentrated in the technology credit sector (Bloomberg, 11/6/2026).


Investor attention shifts to inflation data and Fed commentary. The Consumer Price Index (CPI) arrives on Tuesday and Producer Price Index (PPI) Friday, with consensus expectations calling for core CPI to increase 0.2% month over month and PPI to rise 0.3%. Federal funds futures currently imply an 80% probability of a December rate hike, while a busy calendar of Fed speakers and three-, 10- and 30-year Treasury auctions will also help shape market expectations (Bloomberg, 11/6/2026).



Municipal bond update



AAA municipal yields moved lower across the curve last week. Two- and five-year yields declined six and 12 bps, respectively, while 10- and 30-year yields fell 15 and 12 bps, respectively. This price action left these benchmarks at 2.60%, 2.86%, 3.24% and 4.69%, respectively (LSEG, 11/6/2026).


Five- to 20-year A-rated muni yields closed last week ranging from 3.04% to 4.59%, with related taxable-equivalent yields ranging from 5.14% to 7.75%, assuming a combined federal tax rate of 40.8% (LSEG, Parametric, 11/6/2026).


Muni mutual funds saw net inflows of $287 million, with the mix suggesting continued tax-loss harvesting activity, as open-end funds surrendered $664 million and ETFs received $950 million (LSEG, JPMorgan, 11/4/2026).


This week's calendar remains light and well below trend, with just $5 billion scheduled to enter the primary market (Ipreo, 11/6/2026).


Munis posted positive returns but underperformed last week, improving their year-to-date (YTD) return to -0.43%, while the Bloomberg US Treasury Index had a stronger week, improving its YTD return to -0.16% (Bloomberg, 11/6/2026).

Municipal Index Yield to Worst

Municipal Index Yield to Worst_Nov 10


Sources: The two-, five-, 10-, 15- and 20-year BVAL Municipal AAA Yield Curve (Callable), LSEG, Parametric, 11/10/2026. 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



The ICE BofA 1-10 Year US Corporate Index returned 0.34% for the week and month to date (MTD). The index outperformed like-duration Treasurys by 0.04% for the week and MTD (Bloomberg, 11/6/2026).


US investment-grade (IG) corporate yields decreased across the curve last week. Two-, five- and 10-year yields decreased four, five and five bps, respectively. Corporate yields are higher YTD, with two-, five- and 10-year yields up 105, 102 and 80 bps, respectively (Bloomberg, 11/6/2026).


IG mutual funds and ETFs experienced inflows of $6.6 billion, an increase from the prior week’s inflows of $4.4 billion. IG corporate-only funds recorded inflows of $3.3 billion following last week’s inflows of $2.8 billion (JPMorgan, 11/6/2026).


Corporate one- to 10-year IG bond yields, which have increased 105 bps YTD, ended last week at 5.52% (Bloomberg, 11/6/2026).


Corporate Index Yield to Worst


Corporate Index Yield to Worst_Nov 3 

Source: The two-, five- and 10-year USD US Corporate IG BVAL Yield Curve, Bloomberg, 11/10/2026. 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.