Municipal Market Update | March 2026

The municipal market experienced a pullback in the month of March, giving back most of the strong gains recorded in the first two months of the year. After a strong rally to start 2026, higher supply and shifting rate expectations pressured returns across much of the yield curve.

 

March 2026 saw another exceptionally heavy month of issuance, which proved to be a meaningful headwind for municipals. Elevated supply weighed on market technicals and contributed to the modest widening in yields, particularly relative to the demand-driven strength observed earlier in the year.

Major Bond Index Returns (%)

Municipal Yields (%)

March pushed yields higher for the quarter and year across most of the yield curve. The upward shift highlights the cumulative impact of higher rates and persistent supply despite the previous months of positive total returns earlier in the year.

Quarter-to-Date

SBH Municipal Fixed Income Platform

Source: All data from Bloomberg as of 3/31/26.

 

This update provides an overview of certain broad-based Fixed Income benchmarks and does not include performance of the Segall Bryant & Hamill LLC (dba CI Segall Bryant & Hamill Asset Management) Fixed Income styles. Past performance cannot guarantee future results. All investments involve risk, including the possible loss of capital. An investor cannot invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. All opinions expressed in this material are solely the opinions of Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any and all information perceived from this material does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this material.

 

The Bloomberg 1 Year (1-2) Municipal Bond Index measures the performance of municipal bonds with time to maturity of more than one year and less than two years. The Bloomberg 5 Year (4-6) Municipal Bond Index measures the performance of municipal bonds with time to maturity of more than four year and less than six years. The Bloomberg U.S. 1-15 Year Municipal Bond Index measures the performance of USD-denominated long-term, tax-exempt bond market with maturities of 1-15 years. The Bloomberg US Treasury 1-3 Year Index measure US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with 1-2.999 years to maturity. The Bloomberg US Municipal Index measures USD-denominated long-term tax-exempt bond market.  The Bloomberg US Treasury Intermediate Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with maturities 1-9.9999 years to maturity.  The Bloomberg US Intermediate Corporate Bond Index measure the investment grade, fixed-rate, taxable corporate bond market whos maturities range between 1 to 9.9999 years. The Bloomberg Taxable U.S. Aggregate Bond Index is a broad-based fixed-income index used by bond traders. An investor cannot invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Yield to Worst is the lowest potential bond yield received without the issuer defaulting; it assumes the worst-case scenario, or earliest redemption possible under terms of the bond. Duration is a calculation of the average life of a bond (or portfolio of bonds) that is a useful measure of the bond's price sensitivity to interest rate changes. The higher the duration number, the greater the risk and reward potential of the bond. A basis point is a standard measure for interest rates and other percentages in finance.

 

The funds of the Segall Bryant & Hamill Trust are distributed by Ultimus Fund Distributors, LLC. Separately managed accounts are not distributed by Ultimus Fund Distributors, LLC.

 

An investor should consider investment objectives, risks, charges and expenses of the Fund(s) carefully before investing. To obtain the prospectus that contains this and other information about the Fund(s) please call (800) 392-2673 or visit us online at www.sbhfunds.com. Please read the prospectus carefully before investing. An investment in the Funds involves risk, including possible loss of principal.