Markets

For the first time in 12 weeks, municipal bond funds reported a cash outflow as retail investors cashed out ahead of the April 15 tax filing date.

As the municipal market was winding down on Thursday ahead of the Good Friday observance, traders and underwriter were preparing for an upcoming $871.26 million sale of revenue bonds from the North Texas Tollway Authority.

Municipals offer higher quality than corporate bonds, tax advantages, diversity, as well as higher yield and less duration risk than their Treasury counterparts, two municipal analysts said in reports this week.

If estimates hold, the market is heading into a 12th week in a row with supply more than $8 billion, as issuers look to take advantage of historically low interest rates.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, decreased five basis points to 4.20% from 4.25% for the week ended March 19.

Franklin Templeton Investments filed its first brief on March 25 appealing the ruling that allowed Stockton to exit bankruptcy.

The Florida Hurricane Catastrophe Fund will explore using taxable munis and reinsurance to provide $2.2 billion in liquidity for the upcoming Atlantic hurricane season.

Tobacco bonds may be on their way to the biggest volume since 2007, led by Wednesday's $1.7 billion sale from California, as issuers refinance amid a decline in smoking that's cut deeply into revenue.

Within two to three months Ipreo will serve as point of origination for CUSIP requests, the companies said.

Municipal analysts blame the lull in municipal high-yield investment on a range of factors, from uncertainty over interest rates to bulging supply in the investment-grade sector.