Oliver Renick

The weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, was unchanged at 5.13% for the week ending Dec. 26, 2013, the highest since Oct. 24, 2013, (seven weeks ago), when it was 5.16%.

Treasury yields continued to rise Thursday afternoon following a report by the U.S. Labor Department that showed unemployment claims fell last week. Munis largely avoided the weakening of treasuries, remaining steady to somewhat softer.

The municipal market is benefitting from the absence of traders and brokers who are on vacation this week as Treasuries continue a slide that began last week. Without active participants, yields on tax-exempt bonds have largely remained steady even as Treasury rates weaken.

After almost a year of anticipation, the long-looming ominous cloud of a Federal Reserve taper finally broke on the municipal market last week. The ensuing storm has been but a whimper, said Bank of America's Phil Fischer.

MMA's Matt Fabian reflects on what 2013 brought for the municipal market, which remained largely unchanged at the start of the holiday week.

Municipals crept into the holiday week with very little trading and largely unchanged yields, traders said on Monday.

The municipal market opened Monday morning with little trading activity and a stable tone.

The Bond Buyer's weekly yield indexes were mixed in the week ended Dec. 19.

The market for tax-exempt municipal bonds bounced around Wednesday before the Federal Reserve's announcement that it would slow its policy of quantitative easing sent yields higher at the end of the day.

Bond insurers aren't likely to see rating changes as a result of municipal bankruptcies, though some may be refining their practices, Standard & Poor's said.

Municipal bonds softened Wednesday and Treasuries yields rose as market participants feared the Federal Open Market Committee meeting would result in a tapering announcement.

The municipal bond market was silent Wednesday morning as traders prepared for the much-anticipated announcement by the Federal Open Market Committee meeting at 2 p.m.

New issue municipal deals were well-received Tuesday even with the market was under pressure from sell-offs and the looming threat of a change in Federal Reserve's economic stimulus policy.

The short-lived municipal rally that firmed yields last week continued to ebb on Tuesday as market participants awaited a Federal Reserve announcement on Wednesday.

Moody's Investors Service's Dec. 11 review for downgrade on Puerto Rico's Baa3-rated general obligation bonds is a credit negative for bond insurers Assured Guaranty and National Public Finance Guarantee, the rating agency said in a report Monday.

Tax-exempt municipals remained quiet on Tuesday even as some investors looked to sell unwanted bonds before getting a fresh start in the New Year.

Citi and UBS Financial Services Inc. entered a municipal distribution deal that will bring Citi's network of financial advisors to 17,000 brokers, and provide UBS's high net worth clients with access to Citi's new issue products.

Participants in the municipal bond market said trading was slow throughout Monday, with yields firming in some areas of the curve.

The market for municipal bonds slowed Monday after a busy week that saw healthy demand for a large slate of new issues.

A startup bond insurance company launched by Goldman, Sachs & Co. public finance veterans pushed out president Bradley Wendt after an unsuccessful capital fundraising campaign.