February 2026 Performance Overview
The S&P Municipal Bond Investment Grade Index returned 1.200%, driven by falling yields across the curve, especially for maturities around 20 years.
Other Highlights
- Muni Momentum: Seventh consecutive month of positive returns, bringing the seven‑month trailing return to 6.699%.
- Rates and Curve Dynamics: Broad yield declines supported returns, led by a 16.92 bp drop at the 10‑year point, while overall curve shape remained stable. Parallel Shift Return was 1.054%; Non‑Parallel Shift Return was 0.032%.
- Sector and Spread: Spread tightening in IDR/PCR and Tobacco Settlement boosted performance, while widening in Resource Recovery and Housing detracted. Sector/Quality Return totaled ‑0.093%.
- State Performance:
- Outperformers: Alabama (led by gas/energy prepay bonds in the IDR/PCR sector), New York, Massachusetts.
- Laggards: Texas, Wisconsin, Michigan due to state‑specific spread widening or unfavorable sector composition.
Read the full report for an in-depth understanding of the contributions to the month’s performance.
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