Muni Bond Sales Surge With Debt Met by Eager Investor Demand (1)

Municipal bond sales are surging at the fastest clip in weeks as issuers focus on the prospect of lower borrowing costs amid growing expectations that the Federal Reserve will start cutting interest rates as soon as September.

US states and local governments are expected to sell $16.1 billion of debt over the next 30 days, a number that represents a fraction of what may actually come to market because deals are typically announced with less than a month’s notice. That figure, which sums the forward-looking calendar, shows the quickest pace of new offerings since early June and roughly ...