James Ramage

Sluggish activity in the primary and secondary left most prices in the municipal market slightly weaker Monday.

Investors, waiting for the coming calendar and armed with cash were expected to light up the secondary market with activity this week, but instead, traders report that all has been quiet on the buying front.

A bump in anticipated primary volume should spur the municipal market for the first week of December. But while the market gears up for the coming deals, Monday's session has started flat.

Hurricane Sandy and a presidential election helped to pare municipal bond issuance by 20% for the month of November, breaking from the surging volume numbers that have dominated most of 2012.

Investors, still high on the muni market, continue to allocate money to municipal bond mutual funds, to the tune of $545 million.

Investors laden with cash and anxious about potential tax rates generated heavy activity in the municipal market, prompting another strong week in both the primary and secondary markets.

The municipal bond market will enter the Thanksgiving holiday from a position of strength. Muni bond indexes heading into the holiday fell on all but the short end to levels not seen in more than 47 years.

The Thanksgiving holiday brings a light calendar this week from municipal bond issuers, at $2.25 billion, while investor demand remains considerable and yields hover at record lows.

Another strong week of inflows for municipal bond mutual funds indicated sustained heightened demand for munis. Funds that report their flows weekly recorded inflows of $706 million for the week ended Nov. 14.

Back-to-back holiday weeks combined with robust demand have kindled a strong rally in the municipal market and driven some muni bond indexes to levels they haven’t seen in more than 45 years.

Municipals marked a day of rest following a torrid week of buying and record-setting yields as the bond markets closed for Veterans Day. Industry watchers said they were optimistic about investor demand and the overall state of the market.

The municipal market earned a day of rest after its torrid week of buying and record-setting yields. While the bond markets are closed for Veterans Day, industry watchers are optimistic about investor demand and the overall state of the market.

The municipal market, glad to mark the end to election-related uncertainty and hurricane-generated disruption, still has yet to reach seasonal average volumes. This week's calendar should total $7.61 billion.

Municipal bond mutual funds saw heavy inflows, rebounding with authority from their first week of outflows in more than six months.Those funds that report their flows weekly recorded inflows of $866 million for the week ended Nov. 7.

Results from the U.S. elections on Wednesday provided a record-breaking boost to a municipal market still recovering from last week's hurricane.

Overwhelming uncertainty surrounding the U.S. elections stands as the most likely cause industry watchers cite behind the first outflows municipal bond mutual funds reported in more than six months.

Municipal bond volume saw a slight bump for the month of October, continuing what has been an upward path for the issuance of new muni debt in 2012. Long-term muni bond issuance last month rose 3%, and has increased 39% for the year to date.

Issuance in the municipal bond market should make a resounding return to pre-storm levels this week. Volume should total an estimated $7.06 billion, up from a hurricane-pared $1.66 billion last week.

After 28 straight weeks of inflows to muni bond funds, the market saw outflow for the week ended Oct. 31. Funds that report their flows weekly recorded outflows of $123 million for the week ended Oct. 31, Lipper FMI numbers show.

Hurricane Sandy’s floodwaters immobilized much of the municipal market, but not the buyside. With bond issuance almost halted, investors are even more cautious and hesitant than they have been of late.