Markets

Susannah Page, a former director in the municipal research sector at Bank of America Merrill Lynch, has joined Roosevelt & Cross Inc.

Municipal funds reported outflows for the second week in a row after six-straight weeks of inflows.

Tax-exempt money market funds had outflows of another $1.48 billion as total net assets dipped to $268.81 billion in the week ended March 31.

The second quarter will begin as the first quarter ended, with volume this week on the sparse side.

Ipreo LLC and The Bond Buyer anticipate long-term new volume will hover around $4.19 billion this week, versus last week's revised $4.78 billion reported by Thomson Reuters. The dearth of supply is frustrating for some traders.

The six-week streak of municipal bond fund inflows has ended as concern over rising interest rates weighed on the market.

For yet another year, uncertainty surrounding the potential loss or cap of the municipal tax exemption concerned panelists at the National Municipal Bond Summit.

Continuing a recent pattern, $195 million trickled out of tax-exempt money market funds as total net assetsdipped to $270.29 billion in the week ended March 24, according to The MoneyFund Report, a service of iMoneyNet.com.

Municipal strategists are recommending non-traditional ways to manage the risk of rising interest rates after a surge in the price of short term bonds.

Expectations for rising interest rates, continued low supply, and credit spread tightening are prompting municipal portfolio managers preparing for the second quarter to tweak the duration and credit quality of their tax-exempt holdings, while keeping a wary eye on the economy.

A trio of financings from California, Georgia, and New York will lead the primary market as the first quarter winds down with another week of meagre supply.