Markets

As fund flows turned positive for the first time in 12 weeks, analysts said the impact of Puerto Rico and Chicago on investor behavior may have been overstated, and that fund flows reflect only a corner of the municipal bond market.

Municipal volume is forecast to slip from what may turn out to be the peak of weekly issuance for the rest of the year.

For the week ended July 23, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, decreased four basis points to 4.44%, from 4.48% the previous week.

For the first time in 11 weeks, municipal bond funds reported cash inflows.

Municipal bond funds have reported outflows for 11 straight weeks, as investor confidence gave way to concerns over the credit of such issuers such as Puerto Rico and Chicago and the probability of rising interest rates.

An estimated $9.16 billion in primary issuance is expected for the week of July 20, headlined by a $1.2 billion sales tax revenue offering from the New York State Dormitory Authority.

For the 11th straight week, municipal bond funds reported cash outflows. The weekly reporting funds saw $29.255 million of outflows in the week ended July 15, after experiencing outflows of $305.707 million in the previous week, according to the latest Lipper data.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices increased three basis points to 4.48% for the week ended July 16 from 4.45% in the previous week.

Ohio-based boutique investment firm Lancaster Pollard, which specializes in health care and housing, has a new leadership team.

Cuts in U.S. Army ranks could pose a long-term risk to military housing bonds, though the most recent round should not affect ratings in the short-term, according to Fitch Ratings.