September was the weakest month of the year for municipal bonds. The Bloomberg 1-15 Year Municipal Bond Index returned -3.74%, and every maturity had its worst month of the past year. AAA muni yields rose 61 to 101 bps, more than Treasuries, and the shortest bonds moved most.

The selloff reset value. Munis ended the month near their cheapest against Treasuries in three years, and the 1-15 Year index now yields 4.49%, or 7.58% tax-equivalent for a top-bracket investor. Lower-rated bonds did not cheapen with the market, so most of the new value sits in high quality. Past 10 years the muni curve stays far steeper than Treasuries, which still rewards the long end. Investors added $1.4 billion over the month. Higher starting yields give investors more income to absorb the next move in rates.

After tax, the muni indexes out-yield every taxable index of similar duration, including US Aggregate Long at 6.59%. Source: Bloomberg, Sep 30, 2026. Index data.

M/M Chg = change vs. prior month-end. Yields are YTW; TEY at 40.8%. M/T is the published muni/Treasury ratio (20Y computed from the two yields).

Eff. Dur = effective duration. YTW = yield to worst; TEY = tax-equivalent yield. M/M, YTD and 12-Mo are total returns.

Slope = longer-tenor yield minus shorter-tenor yield. Positive difference means the muni curve is steeper than Treasuries.

Fund flows: ICI weekly composite, weekly reports dated in the period; positive = net inflows. Visible supply: Bond Buyer 30-day calendar at month end; year ago and 5-year average use the same calendar date.

Munis are near their cheapest versus Treasuries in three years (10-year ratio 78.1%), while A and Baa credit spreads are near their tightest. Source: Bloomberg, Sep 30, 2026. Index data.

M/M = Month-over-month change; M/T = Muni-to-Treasury ratio; YTW = Yield to Worst; UST = U.S. Treasury. As of September 30, 2026.

Sources: Bloomberg, Ipreo Bond Fund Flows, Investment Company Institute, and Bond Buyer. A basis point is a standard measure for interest rates and other percentages and represents one-hundredth of a percentage point (0.01%). Yield to Worst is the lowest return that can be received on a bond without the issuer defaulting. Effective Duration is a measure of price sensitivity resulting from changes in the yield of a bond. Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations, such as Moody's and S&P, and are subject to change. TEY is calculated by adjusting municipal yields for a 40.8% assumed federal tax rate (37.0% income tax plus 3.8% Net Investment Income Tax). Cross-sector pickup reflects the difference between municipal TEY and comparable taxable yields, where positive values indicate relatively more attractive municipal valuations. Interest on municipal bonds is generally exempt from federal income tax. Advisory services are offered through Segall Bryant & Hamill, LLC, d/b/a CI SBH Asset Management (“SBH”), a registered investment adviser with the U.S. Securities and Exchange Commission. This update provides an overview of certain broad-based Fixed Income benchmarks and does not include performance of CI SBH 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. SBH's views are subject to change without notice, and SBH has no obligation to update or correct this material.

Muni 1–15 Yr Blend = Bloomberg U.S. 1–15 Year Municipal Bond Index, which measures the performance of the USD-denominated, long-term tax-exempt municipal bond market with maturities between 1 and 15 years. Muni Agg = Bloomberg US Municipal Bond Index, which measures the performance of the USD-denominated, long-term tax-exempt bond market. UST Bills 1–3M = Bloomberg US Treasury Bills 1–3 Month Index, which measures US dollar-denominated Treasury bills with maturities between 1 and 3 months. US Gov/Credit Int. = Bloomberg US Government/Credit Intermediate Index, which measures US dollar-denominated, fixed-rate, investment-grade government and corporate bonds with intermediate maturities. US Aggregate = Bloomberg US Aggregate Bond Index, which measures the investment-grade, US dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS, and CMBS. US Aggregate Long = Bloomberg US Aggregate Long Index, which measures the long-duration component of the Bloomberg US Aggregate Bond Index (typically maturities greater than 10 years). US MBS = Bloomberg US Mortgage-Backed Securities Index, which measures agency mortgage-backed pass-through securities issued by GNMA, FNMA, and FHLMC. US Corporate IG = Bloomberg US Corporate Investment Grade Index, which measures US dollar-denominated, investment-grade, fixed-rate corporate bonds. 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.