Muni Bond Sales Slump Deepens as Higher Rates Curb Refinancing

Long-term US municipal bond sales started 2023 at the slowest pace of issuance since 2018, extending a slide that began last year.

Sales fell 24% in the first quarter as state and local governments issued about $74 billion in long-term debt, compared with nearly $100 billion during the same period last year. The downturn continues a slump that started in 2022 when municipal bond sales decreased by 21%.

States and local governments flush with federal stimulus infrastructure cash have slowed their borrowing, at the same time rising interest rates have choked off refinancings. It’s a “double whammy” for new bond ...