Markets

Municipal bond funds saw $2.086 billion of inflows in the week ended Dec. 22, the Investment Company Institute reported Wednesday after a $2.517 billion inflow the week prior.

Lincoln Way school district in suburban Chicago moved further back up the investment grade ladder with a Moody's Investors Service upgrade.

While way up annually, pending home sales saw its third consecutive month of decline. Elsewhere, the Chicago PMI bested estimates.

While there are no major sales on the calendar for this week, some larger deals from and Texas, California, New Jersey and Colorado issuers are on tap for the first few weeks of 2021.

The housing market continues to shine, showcased by the S&P CoreLogic Case-Shiller national index, which climbed 1.4% in October from a month earlier. On an annual basis the national index jumped 8.4% in October, compared with 7.0% in September.

Refinitiv Lipper reported tax-exempt mutual funds saw $1.288 billion of inflows in the week ended Dec. 23, the seventh week in a row investors put cash into the funds.

With sparse economic data available, market participants will likely be focused on news from Washington and the continued effects of COVID-19, according to the economists at Deutsche Bank.

Public finance groups are optimistic 2021 will be a breakthrough year for federal tax law changes to help spur the use of tax-advantaged bonds.

IHS Ipreo estimates the week's bond volume at $7.3 million in a calendar composed only of small negotiated deals.

A record year of overall issuance, led by a boom in taxables, tells the story of a growing muni market with a broader, more diverse investor base.