According to @business, US states and local governments sold over 500 billion dollars of municipal debt in 2025, setting a new record for the second consecutive year as they address lingering infrastructure needs, source: Bloomberg (@business). The report confirms record primary market supply in the municipal bond market in 2025, a key data point for traders tracking issuance volumes and pipeline activity, source: Bloomberg (@business).

According to The Kobeissi Letter, the increase in bond supply has led to a decrease in bond prices and an increase in yields due to simple supply and demand dynamics. They highlight that real yields have consistently risen since 2022, indicating that inflation is not the main factor driving the recent increase in interest rates. This suggests traders should consider the impact of bond supply on yield trends rather than focusing solely on inflation metrics.