Muni Market Operating Efficiently: BofA's McQueen

Watch on YouTube ↗  |  June 15, 2026 at 14:10  |  4:50  |  Bloomberg Markets
Speakers
Matthew McQueen — Head of Global FICC Micro, Bank of America

Summary

Matthew McQueen, head of global FICC micro at Bank of America, discusses the municipal bond market's resilience to rate volatility, attractive valuations inside the 10-year part of the curve, robust infrastructure-related demand driving long-end issuance, the negligible impact of state wealth-tax discussions, and the structural shift toward muni ETFs and separately managed accounts.

  • Muni market has shown minimal impact from recent rate volatility, staying efficient and robust.
  • Valuations inside the 10-year point of the curve are described as very investor-friendly.
  • Infrastructure spending needs will boost issuance in the 10-30 year segment, where municipal ratios are particularly attractive.
  • Wealth tax debates in some states have not widened muni spreads, and state credit quality remains solid.
  • Muni ETF inflows have overtaken mutual fund inflows this year, and separately managed accounts are expanding.
  • Market structure has adapted to rising small-lot trading volumes through algorithmic trading and portfolio trading.
Ideas
Matthew McQueen Head of Global FICC Micro, Bank of America 0:54
Muni bonds inside 10-year are attractive.
Despite significant rate volatility and front-end selloff, the municipal market has been minimally impacted, with no widening of ratios or investor outflows. Valuations inside the 10-year point of the curve remain very investor-friendly.
Municipal bonds (inside 10-year) MED
Matthew McQueen Head of Global FICC Micro, Bank of America 1:37
Long-end muni ratios are very attractive.
Infrastructure projects will look to sell debt out past 10 years to 30 years, where municipal ratios are currently as attractive as they get. High construction costs and competition from data-center building will drive substantial new issuance, but investor demand for the yield remains robust.
Municipal bonds (10-30 year) MED
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This Bloomberg Markets video, published June 15, 2026, features Matthew McQueen discussing Municipal bonds (inside 10-year), Municipal bonds (10-30 year). 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Matthew McQueen  · Tickers: Municipal bonds (inside 10-year), Municipal bonds (10-30 year)