Hillary Flynn

The municipal bond market’s sell-off on Wednesday forced the $99.68 million La Porte Independent School District deal to come to market with its bonds on the long end featuring 4% coupons.

Tobacco bond holders are selling long maturities and reinvesting the new cash in higher rated securities, traders said.

Morgan Stanley is expected to price Wednesday the $350 million Houston independent school district variable rate limited tax schoolhouse bond deal, the largest of the sparse week, and investors believe it will be in high demand.

Tuesday's Treasury sell-off will have a minimal impact on municipal bonds this week, investors said.

Yields strengthened on Miami-Dade County revenue 5s of 2043s, sold for Rickenbacker Causeway, Tuesday morning, when the maturity was one of the most actively traded in the secondary market.

August's volume this year came in higher than it did for the same month during 2013, but analysts are divided over whether this means issuance will pick up for the rest of the year.

Demand for municipal bonds held fairly steady even though it was the week leading into the Labor Day holiday.

Inflows for all municipal bond funds held steady as the Labor Day holiday week approached.

Detroit Water and Sewer bonds rallied as they became free to trade on Thursday, and Illinois yields followed, a sign of investors’ demand for yield in a low-supply environment.

The success of the oversubscribed $1.8 billion Detroit Water and Sewer Authority deal earlier this week has made investors more confident in bonds from states and municipalities that have financial troubles.

The changing demographics of prospective students may present an opening for higher education institutions to attract more students and strengthen their revenue stream, according to analysts.

Investors are divided over how the $160.9 million Austin, Texas, deal scheduled for Wednesday will be impacted by the $5.4 billion Texas tax and revenue anticipation note sale.

The Michigan Finance Authority stole the attention in the municipal market Tuesday, pricing a mammoth $1.8 billion of local government loan program revenue bonds for the Detroit Water and Sewerage Department.

Investors famished for yield will turn to the $99.1 million Dallas-Fort Worth international airport joint revenue refunding bonds this week, traders said.

Inflows for all municipal bond funds rose to their highest levels in the last three weeks. Funds that report weekly said inflows rose to $648 million for the week ending Aug.13 from $16.6 million the week before, according to Lipper FMI.

Zero coupon tobacco bonds may fall especially hard when interest rates begin to rise, according to analysts who follow the high yield, long maturity securities.

Marijuana legalization has failed to live up to the hype in terms of its impact on state economies, according to the three major rating agencies.

With higher education issuance set to jump, analysts are pondering whether the higher yields on the credits are worth the risk.

The New York City Transitional Finance Authority may have found the perfect deal structure to take advantage of the lack of short term paper in the market.

Inflows for all municipal bond funds fell off slightly this week from last week, but still remain fairly strong.