Markets

The Texas Department of Transportation will lead the week's new-issue activity with a $900 million sale of general obligation mobility-fund refunding bonds as volume in the municipal market is projected to stay above $6 billion for a third straight week.

As state and local governments make efforts to prepare for climate change, credit analysts are watching closely to see how impacts from weather-related events might affect credit quality.

Inflows into all municipal bond funds increased from last week without climbing back to May's levels.

The Bond Buyer's muni bond indexes were mixed in the week ending June 12.

The supply shortage in the tax-exempt market in 2014 is making summer reinvestment season especially challenging for cash-laden investors.

Investment research firm Morningstar said it will no longer provide municipal bond credit analysis or commentary.

A $1.7 billion Los Angeles Unified School District general obligation refunding planned for this week will help boost volume to the highest in three months, and help satisfy pent-up demand among eager, cash-flush investors, according to municipal traders.

This year's higher taxes played a secondary role as demand for municipal bonds surged after April 15 tax deadline passed, according to analysts.

The Bond Buyer's muni bond indexes mostly weakened in the week ending June 5.

Hedge funds and other non-traditional buyers will exit the municipal market place if munis continue to grow more expensive relative to Treasuries, BlackRock said.