Research · Monthly market note · October 2026
Monthly market note: October 2026
The month for industrial revenue bonds in public data: Treasury rates from FRED, fund holdings and fund-family activity from SEC Form N-PORT, bank demand from FDIC call reports, and the dates when the next figures arrive.
Data as of: FRED through 2026-10-22 · N-PORT fund families 2026Q2 to 2026Q3 · market file built 2026-10-24.
Key takeaways ¶
- Treasuries. The 10-year closed at 4.96% on 2026-10-22, +0 bp over the month; the 2-to-10-year slope is +31 bp against +25 bp a month earlier.
- Fund holdings of conduit revenue bonds stood at $107.3B in the latest quarterly N-PORT data, +5.7% on the quarter and +8.3% on the year.
- Fund families (191 with filings in both 2026Q2 and 2026Q3) added $2.1B of par in IRB-type bonds and cut $1.7B; 97 were net buyers and 92 net sellers.
- Banks reported $284.9B of municipal securities (all types), -0.2% on the quarter.
- Volume cap. 2026: $135 per resident, minimum $397,625,000 (Rev. Proc. 2025-32), Census Vintage 2025 population estimates.
Rates ¶
Tax-exempt yields are set by the market, but Treasury yields are the public benchmark most buyers watch. We show U.S. Treasury constant-maturity yields as published by the Federal Reserve Bank of St. Louis (FRED). We do not publish licensed municipal benchmark levels.
Solid line: latest. Dashed line: about one month earlier.
Source: FRED, Board of Governors of the Federal Reserve System (H.15).| Tenor | Latest | A month earlier | 1 month | 1 year |
|---|---|---|---|---|
| 2-year (DGS2) | 4.65% | 4.71% | -6 bp | +120 bp |
| 5-year (DGS5) | 4.78% | 4.83% | -5 bp | +122 bp |
| 10-year (DGS10) | 4.96% | 4.96% | +0 bp | +99 bp |
| 30-year (DGS30) | 5.29% | 5.29% | +0 bp | +75 bp |
Fund demand ¶
Registered funds are the core buyers of unrated industrial bonds. The series below is quarterly: N-PORT holdings become public with a lag, so a monthly note restates the latest quarter until the next one is published.
| Fund family | Added | Cut | Net | New positions |
|---|---|---|---|---|
| Capital Group Fixed Income ETF Trust | $101.9M | $17.4M | $84.5M | 6 |
| Nuveen Municipal High Income Opportunity Fund | $66.7M | $15.4M | $51.3M | 20 |
| VANGUARD MUNICIPAL BOND FUNDS | $69.8M | $23.8M | $46.0M | 3 |
| BlackRock ETF Trust II | $39.2M | $4.0M | $35.2M | 9 |
| J.P. Morgan Exchange-Traded Fund Trust | $80.0M | $44.9M | $35.1M | 15 |
| Victory Portfolios III | $36.0M | $2.8M | $33.3M | 9 |
| BBH Trust | $32.5M | $3.0M | $29.5M | 2 |
| American High-Income Municipal Bond Fund | $163.3M | $138.8M | $24.5M | 22 |
| Fund family | Added | Cut | Net | New positions |
|---|---|---|---|---|
| Nuveen Municipal Trust | $245.4M | $303.7M | −$58.3M | 35 |
| Federated Hermes Fixed Income Securities, Inc. | $21.6M | $79.1M | −$57.5M | 0 |
| VANGUARD CMT FUNDS | $4.2M | $41.0M | −$36.8M | 2 |
| AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) | $14.2M | $42.2M | −$28.0M | 3 |
| SIX CIRCLES TRUST | $24.4M | $48.3M | −$23.9M | 4 |
| AIM Counselor Series Trust (Invesco Counselor Series Trust) | $7.4M | $31.0M | −$23.7M | 2 |
| Issuer | State | Change | Held |
|---|---|---|---|
| PUBLIC FIN AUTH WIS | WI | $1.3B | $1.4B |
| Public Finance Authority | — | $789.6M | $9.1B |
| FLORIDA DEV FIN CORP | FL | $505.1M | $509.8M |
| Massachusetts Development Finance Agency | MA | $427.9M | $5.6B |
| NEW JERSEY ECONOMIC DEV AUTH | NJ | $408.7M | $412.4M |
| PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY (PA) | PA | $349.1M | $349.1M |
Bank demand ¶
FDIC-insured banks held $284.9B of municipal securities in the latest call reports. Bonds banks buy directly are often booked as loans and are not in this figure; see the market pulse for the five-quarter series.
What to watch ¶
| Date | What |
|---|---|
| 2026-12-31 | Calendar quarter ends. |
| 2027-01-30 | Bank call reports for the quarter are due (30 days after quarter end; 35 days for banks with foreign offices). |
| 2027-03-01 | Form N-PORT holdings for the quarter-end month become public about 60 days after quarter end. |
| Each business day | FRED updates Treasury constant-maturity yields. |
Federal bills that would change the small-issue limits are tracked on the legislative watch.
Earlier notes: October 2026
Methodology and sources ¶
Treasury yields are FRED constant-maturity series (DGS2, DGS5, DGS10, DGS30), daily closes; “about one month earlier” is the last close on or before 30 days before the latest. Fund holdings are SEC Form N-PORT positions classified by Securitief as conduit and industrial-type municipal bonds; fund-family adds and cuts compare par held in the last two quarterly filings for families that filed in both. Bank figures are municipal securities in FDIC call reports. No licensed index levels (MMD, BVAL, ICE) or EMMA trade data are used. Figures are revised as late filings arrive.
Important information. Securitief Research is published by Securitief, operated by Applied America. Securitief is not a placement agent or underwriter and does not seek or receive compensation from any financing, including financings of issuers and borrowers discussed here. It is not acting as a municipal advisor and owes no fiduciary duty to any issuer or obligated person unless separately engaged in writing.
This material is general information. It is not tax, legal, investment or municipal advice, a recommendation, or an offer to sell or a solicitation of an offer to buy any security. Offers are made only by offering documents and only where permitted by state securities laws. State allocation procedures change; confirm current rules with the allocating agency and bond counsel.
Sources: SEC Form N-PORT and FDIC call reports (holdings), IRS and Census (volume cap and population), state agency publications. Issuer classification and aggregation are Securitief’s own and may contain matching errors; figures may be revised. No licensed index levels (MMD, BVAL, ICE) or EMMA trade data are used. Past holdings do not indicate future demand, pricing or the availability of financing. Interest on private activity bonds may be subject to the alternative minimum tax; tax treatment depends on the facts and the opinion of bond counsel.
Cite this page: Securitief Research, “Monthly market note: October 2026,” October 2026, https://securitief.com/market-note-2026-10.