Dan Seymour

The giant question mark of whether bankers will be able to find buyers for municipal bonds if and when they come in heartier supply continues to keep dealers sidelined, demand sickly, and yields drifting up.

The giant question mark of whether bankers will be able to find buyers for municipal bonds if and when they come in heartier supply continues to keep dealers sidelined, demand sickly, and yields drifting up.

Municipal debt continued its steady fade Thursday as lingering concerns about the market’s capacity to soak up whatever supply might be coming later this year kept people from bidding on bonds.

Municipal debt continued its steady fade Thursday as lingering concerns about the market’s capacity to soak up whatever supply might be coming later this year kept people from bidding on bonds.

This is no longer a reversal of the flight to quality. Municipal bonds are flat-out weak.

This is no longer a reversal of the flight to quality. Municipal bonds are flat-out weak.

The downturn in property tax receipts for municipal governments may finally have begun.

The municipal bond market turned in a very quiet session Friday ahead of a mild supply test this week.

The municipal bond market turned in a very quiet session Friday ahead of a mild supply test this week.

The global flight from risk continued to bolster the municipal bond market on Wednesday as the prospect of a nuclear meltdown in Japan enhanced the appeal of the shelter of low-risk bonds.

The global flight from risk continued to bolster the municipal bond market on Wednesday as the prospect of a nuclear meltdown in Japan enhanced the appeal of the shelter of low-risk bonds

The panicked aftermath of last week’s earthquake in Japan buttressed the municipal bond market on Tuesday as investors sought the protective sanctuary of high-quality dollar-denominated bonds.

The panicked aftermath of last week’s earthquake in Japan buttressed the municipal bond market on Tuesday as investors sought the protective sanctuary of high-quality dollar-denominated bonds.

The growing consensus on the Street is that municipal debt would be taking a hit if only there were enough transactions to illuminate the weakness that pervades the market.

The municipal market closed out Friday mostly unchanged for the day as well as for the week, as a dearth of activity hasn’t offered enough evidence to move the scales in either direction.

It says something about how thin demand for municipal bonds is right now that even a light batch of top-quality paper in the midst of a supply drought gives the Street a minor hiccup.

It says something about how thin demand for municipal bonds is right now that even a light batch of top-quality paper in the midst of a supply drought gives the Street a minor hiccup.

A couple of top-quality deals on Wednesday offered little clarity on the market’s strength, depth or direction.

A couple of top-quality deals on Wednesday offered little clarity on the market’s strength, depth or direction.

The supply drought that has prevented the municipal yield curve from steepening further is a drought better measured in years than in dollars.