Munis Firmer as Inflows Continue

Muni yields bumped up as Treasuries strengthen and equities decline

Published on Feb. 12, 2026

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Municipal bonds were firmer on Thursday as U.S. Treasuries strengthened and equities ended the day down. Muni yields were bumped up one to three basis points, while Treasury yields fell five to eight basis points near the close. Inflows into municipal bond mutual funds continued, with $1.576 billion added in the week ending Wednesday, the fifth time in the past six weeks that inflows topped $1 billion.

Why it matters

The continued strong inflows into the muni market highlight the ongoing demand for municipal bonds, even as valuations are seen as rich and upcoming supply is expected. This resilience in the face of broader market volatility underscores the fundamental strength of the municipal bond market.

The details

Muni-Treasury yield ratios remained elevated, with the 10-year ratio at 62% and the 30-year at 91%. Mega deals continued to come to market, with Washington issuing $1.3 billion in general obligation bonds and the Harris County Cultural Education Facilities Finance Corp. selling $1.26 billion in revenue refunding bonds. Investors are looking for yield opportunities in the 20-25 year part of the curve, as the long end has become oversubscribed.

  • On Thursday, muni yields were bumped one to three basis points.
  • In the week ended February 9, municipal bond mutual funds saw inflows of $1.576 billion.

The players

Kim Olsan

Senior fixed income portfolio manager at NewSquare Capital.

Mark Paris

Chief Investment Officer at Invesco.

Rick Kolman

Head of municipal securities at Academy Securities.

Bo Daniels

Head of public finance at Loop Capital Markets.

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What they’re saying

“It is amazing how, despite the long list the market has been able to work with those risks.”

— Rick Kolman, Head of municipal securities at Academy Securities

“Investors are going to want to go out [long], but there's not a lot of ability by the sellside to maintain that long end, and the buyside doesn't have enough of the flows to do it.”

— Mark Paris, Chief Investment Officer at Invesco

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.