Chip Barnett

The municipal bond market was waiting the bulk of the week's paltry supply to price on Tuesday as traders kept watch on muni yields, which fell sharply on Monday in the wake of Puerto Rico and Greece financial turmoil.

Worry about Greece fueled a flight to safety buy in bonds on Monday, pushing up prices of both U.S. Treasuries and municipal bonds. Traders said yields on most top-rated municipals closed down six basis points as uncertainty over Puerto Rico added to investors' general unease.

Worry about Greece fueled a flight to safety buy in bonds on Monday, pushing up prices of both U.S. Treasuries and municipal bonds.

Prices of top-shelf municipal bonds were sharply higher, traders said, as yields on some maturities fell by as much as six basis points as uncertainty over Puerto Rico and Greece fueled a flight to safety buy.

Prices of Puerto Rico debt fell on Monday after a published report quoted Gov. Alejandro García Padilla as saying the commonwealth cannot pay its $72 billion in debt.

For the eighth week in a row, municipal bond funds reported outflows, bringing to 11 out of 26 weeks this year the funds have seen cash withdrawals.

Prices of top-quality municipal bonds finished unchanged on Wednesday, traders said, as Stifel priced the city of Los Angeles' $1.4 billion of tax and revenue anticipation notes while Bank of America Merrill Lynch priced the state of Massachusetts’ $955 million of general obligation bonds for institutions.

Prices of top-quality municipal bonds were mixed at mid-session, traders said, as yields on some maturities were steady to up by as much as one basis point.

Lumesis introduced a new product available on Ipreo’s platform to help municipal bond underwriters navigate the new regulatory landscape.

For the seventh week in a row, municipal bond funds reported outflows, bringing to 10 out of 25 weeks this year the funds have suffered cash withdrawals.

Prices of top-rated municipal bonds were higher at mid-session, traders said, as yields on some maturities fell by as much as three basis points. In the primary market, Baltimore County, Md., sold two high-quality issues totaling $168 million in the competitive sector.

Municipal bond traders were waiting for new supply to come to market as they watch yields on top-rated munis move lower.

Prices of top-shelf municipal bonds ended higher on Monday, traders said, with yields on some maturities falling by as much as two basis points. In the primary market, the New York City Transitional Finance Authority’s held the first of a two-day retail order period for its $750 million bond deal.

Prices of top-shelf municipal bonds were higher at mid-session, trader said, with yields on some maturities falling by as much as three basis points.

Volatile muni yields coupled with the trepidation surrounding a Federal Open Market Committee meeting seem to have put a damper on new issuance as volume for the coming week is estimated at $6.72 billion, according to Ipreo and The Bond Buyer.

There was a lot happening in the new issue market during the week as about $7.36 billion of new supply hit the market. Grabbing the most attention were several deals from down South, including the state of Georgia, the County of Miami-Dade and the city of Atlanta.

Prices of top-shelf municipal bonds were higher at mid-session, trader said, with yields on some longer-dated maturities falling by as much as three basis points.

The municipal bond market was catching its breath after a week of heavy competitive sales and is now turning its gaze to the upcoming week's supply.

For the sixth week in a row, municipal bond funds reported outflows, bringing to nine out of 24 weeks this year the funds have suffered cash withdrawals.

This year’s surge in municipal bond new issuance may be starting to slow down, according to a by CUSIP Global Services, which tracks requests for new security identifiers.