The Municipal curve steepened in September, with yields on the short end essentially flat and 10+ year yields higher by 5-6 basis points (bps). Inflows into Muni Mutual Funds continued, with an additional $6 billion added this month. With rates so low, the market appears to be reaching for yield and focusing on lower-rated credits, resulting in spreads continuing to fall. We expect new issuance to pick up prior to the election and the market’s focus to remain on these lower-rated issuers, presenting a good opportunity to invest in the higher-grade sectors and credits that we prefer.