April 2026 Performance Overview
The S&P Municipal Bond Investment Grade Index increased by 1.05% in April, as falling municipal yields—especially in longer maturities—helped lift year‑to‑date returns back into positive territory.
Other Highlights
- Rates and Curve Dynamics: Municipal yields declined across most of the curve, with the largest decreases at the long end, continuing the flattening trend seen in March.
- Sector and Spread: Spreads widened modestly overall for most sectors, particularly Resource Recovery, Transportation, Housing, and Prerefunded/ETM. Tobacco Settlement bonds were a notable exception, experiencing tightening.
- Credit Quality Performance: Lower‑rated bonds, despite benefiting from higher yields and longer average durations, saw their spreads widen slightly overall.
- State Performance: States with longer durations, including Texas and New York, outperformed. Virginia benefitted from tightening Transportation & IDR / PCR spreads, bucking the national widening trend. However, Wisconsin lagged due to weakness in its Transportation sector.
Overall, April’s performance reflected the continued importance of rate movements, curve positioning, and sector allocation in municipal portfolios.
Read the full report for an in-depth understanding of the contributions to the month’s performance.
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