According to Sifma data, municipals’ primary markets issued a record US$162.8 billion of new debt in the second quarter of 2025, eclipsing the previous quarterly high of US$142.2 billion set in Q3 2024.
The trend continued in July 2025, with secondary markets’ average daily volume (ADV) up 19.2% year over year (YoY) to US$15.5 billion and primary issuance up 32% YoY. To US$54.8 billion.
According to Sifma data, in Q2 2025, revenue bonds accounted for 60.3% of the issuance at US$98.1 billion, while general-obligation issues represented 39.7% at US$64.7 billion. The issuance was negotiated rather than competitive for 80.6% of deals at US$131.2 billion, compared to competitive auctions, which accounted for 17.3% of the issuance at US$28.2 billion. Private placement volumes were marginal at US$3.5 billion.
June alone delivered US$58.5 billion of new paper, the busiest single month since October 2024.
Average monthly issuance for 2025 is US$48.3 billion, accelerating to a monthly average of US$54.3 billion in Q2 2025.
July 2025 municipals’ primary markets were up 32% YoY at US$54.8 billion.
Secondary markets for municipals keep getting busier. Average daily volume climbed to a record US$20.2 billion in April, lifting the year-to-date monthly mean to US$15.6 billion.
July 2025 activity carried on unabated, with ADV at US$15.5 billion up 23.6% YoY.
CUSIP Global Services’ June statistics hint at a potential easing in forward supply. Identifier requests for new municipal securities fell 1.2% from May, and bond-specific requests were down 9.8%. Even so, overall municipal CUSIP volumes remain 16.8% higher YoY, with New York (233 requests), Texas (151) and California (136) the most active states.
The next CUSIP data point will be published the week of 11 August.
©Markets Media Europe 2025
