Hillary Flynn

The municipal market had a delayed reaction to the higher-than-expected GDP growth reported Wednesday morning, weakening across the curve on Thursday as Treasuries strengthened.

If the Puerto Rico Electric Power Authority were to fail to make loan payments to Citibank due on July 31, the consequences might spread beyond Puerto Rico bonds. Bad news on PREPA could also trigger a selloff of tobacco bonds, analysts speculated.

Analysts are conflicted over how investors should protect their 2014 returns and mitigate their interest rate risk for the rest of the year.

Municipal funds reported their highest inflows in 11 weeks.

Investors are buying housing bonds in the secondary because they are performing well and offer attractive spreads, according to market participants.

Analysts and investors are applauding the pressure Standard & Poor's is putting on issuers to disclose their outstanding direct loans.

The $722.9 million New Mexico Municipal Energy Acquisition Authority gas supply revenue refunding bonds are grabbing investors focus this week because of the deal's size and because there are not many New Mexico bonds in the market.

Municipal bond demand is helping the New York City Transitional Finance Authority to find a market for its $675 million of revenue multimodal bonds with a mandatory tender feature.

Municipal bond funds reported outflows for the first time in 10 weeks.

The market was unperturbed by Fitch Ratings' sharp downgrade of the Puerto Rico Sales Tax Financing Corporation's debt to BB-minus from AA-minus.

The largest deal of the week, $300 million of Massachusetts School Building Authority bond anticipation notes, is expected to be gobbled up by traders.

The Federal Open Market Committee meeting minutes scheduled for release on Wednesday may shake the market, investors said.

Municipal bond yields weakened across the board as concern over Puerto Rico credits permeated the market Tuesday.

Trading on Puerto Rico Electric Power Authority bonds spiked on Tuesday after the authority was given an extension on bank credit payments it had due in early July.

Thomson Reuters mid-year data shows that Morgan Stanley has jumped up underwriter ranks in the second quarter from the first quarter, managing a larger volume and increasing its market share.

Municipal bond fund inflows fell to their lowest levels in the last nine weeks during the week leading into the Fourth of July holiday.

The yield spike on bonds from Puerto Rico's massive March $3.5 billion issuance has caused some market participants to question the paper's continued value.

Yields on Puerto Rico's mammoth $3.5 billion general obligation bonds, issued in March, jumped to their highest levels.

For the first month this year, long-term municipal bond volume has exceeded its 2013 total.

Details are starting to emerge on an opaque part of the market, as issuers respond to a Standard & Poor's request for disclosure on municipalities' direct loans.