Municipal Fixed Income Investment Strategy, October 2025

October 14, 2025 — Sage provides an outlook for the municipal market, including our sector views and positioning.

Key Takeaways

  • Economic and Policy Landscape: Municipal markets rebounded in Q3 amid falling yields, resilient economic indicators, and expectations of gradual Fed rate cuts.
  • Market Performance: Municipal bonds delivered strong returns across durations and credit tiers, with longer maturities and lower-coupon structures outperforming.
  • Municipal Outlook: The market favors longer-duration, lower-coupon bonds, prompting a strategic shift amid rich valuations, sector risks, and anticipated Fed easing.

  • DATE: October 14, 2025
  • TYPE: PDF
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