Treasury yields rose across the curve last week resulting from market volatility and geopolitical conflict, with 10-year and 30-year yields increasing 18 bps and 13 bps, respectively. Municipal yields followed suit, with the 10-year yield rising 18 bps and the 30-year yield rising 9 bps. Despite the increase seen last week, through 10 years, municipal yields are lower than at the end of 2025 and the long-end of the municipal curve is largely unchanged from the end of last year. Municipal bond funds saw $1.4 billion of inflows compared to $1.0 billion of inflows in the prior week, marking 15 consecutive weeks of positive flows. While the evolving Middle East conflict will take center stage for investors this week, market participants will also be reviewing the February CPI report, which will be released on Wednesday. Markets are pricing in one full Fed rate cut by year-end, which is down from over two cuts last week.

U.S. Treasuries fell across the curve last week, as the 10-year and 30-year yield decreased 11 bps and 8 bps, respectively. Municipal yields followed to a lesser extent, with the 10-year yield unchanged and 30-year yield falling 6 bps. Municipal bond funds saw $1.0 billion of inflows compared to $1.3 billion of inflows in the prior week, marking 14 consecutive weeks of positive flows. Economic data releases, including the February jobs report, will take a backseat this week as market participants will mostly be focused on the conflict with Iran. Treasury yields have increased this morning amid concerns around energy supply disruption and potential energy price increases. The 10-year Treasury has moved approximately 9 bps higher in morning trading. Municipal yields have increased 1-3 bps across the curve. While we currently do not expect the geopolitical conflict to disrupt healthcare capital markets activity, the potential impact across markets remains fluid.