Munis’ ‘Frenetic’ Trading Pace Smashes Record After Supply Surge

Investors and dealers are trading municipal bonds at a record pace this year, driven by strong government sales and a burst of volatility tied to tariffs and interest rate moves.

Through Nov. 12, the number of trades has already surpassed 15.4 million, exceeding last year’s total of 14.5 million and marking the highest annual volume since the Municipal Securities Rulemaking Board began tracking data in 2006. These figures cover new issuance, secondary market transactions and both customer and inter-dealer trades.

Issuance by state and local governments has been a major factor behind the heightened activity, while macroeconomic events, including April’s ...