October 2025 Municipal Market Performance Recap
The three-month period (August–October) delivered a 4.175% return, marking one of the strongest 3-month stretches in the past decade.
Other Highlights:
- Total Return: +1.074% (S&P Global Municipal Bond Investment Grade Index)
- Long durations benefited the most from curve shifts
- Shorter-duration bonds weathered increased yield curve inversion
- Like last month, AAA and AA Local GO spreads tightened on average while Housing spreads widened
- Sector and quality spread movements played a smaller, but still positive role, overall
- Top State Performers: Texas, Pennsylvania, New Jersey, California, and Colorado
All table data and figures in this report were produced using Investortools, Inc.’s Custom Index Manager™ product.
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For more than four decades, Investortools has been a leading SaaS provider of solutions regarded by the industry as a prerequisite for fixed-income investment management. Its comprehensive product suite covers portfolio, order, and execution management, performance analytics, 2a-7 compliance, and credit analysis. Trusted by over 200 firms managing more than $1 trillion in assets, Investortools supports SMA managers, fund managers, broker-dealers, and other key market participants.
