Muni Market Inches Closer to $5 Trillion With a Record Quarter

Municipal-bond bankers have been extra busy this year as state and local governments rush to borrow at a record pace to fund projects.

State and local governments have sold $153 billion of new debt in the second quarter, already the biggest ever with just four trading days left in the period, according to data compiled by Bloomberg. That has lifted 2025 sales to more than $271 billion, a 21% increase over last year’s volume.

That tempo is likely to become a new normal as construction costs soar and borrowers burn through their pandemic-era stimulus funds, according to Barclays Plc. ...