Bank of America Forecasts Slight Increase in Municipal Bond Sales in 2024 Despite Higher Rates

Bank of America forecasts $400 billion of municipal bond sales in 2024, up slightly from 2023.

Municipal bond issuance has fallen short of banks' forecasts the last 2 years as higher rates spur governments to delay borrowing.

In 2024, Bank of America expects $300 billion in new project bond sales, up 4.5%, and $100 billion in refinancing.

Lower growth rate reflects high rates in early 2024 and low GDP growth next year.

Shift from Fed tightening to easing in 2024 should boost municipal bonds, but timing and magnitude are key for refundings.