Markets

Municipal bond mutual funds got a reprieve after three weeks of increasingly large outflows, with just $1.74 billion withdrawals in the week ended Aug. 28, according to Lipper FMI numbers.

Outflows among tax-exempt money market funds erased the inflows they gained last week - and then some -- as $1.06 billion fled the industry and total net assets dipped to $266.89 billion in the week ended Aug. 26, according to The Money Fund Report, a service of iMoneyNet.com.

Municipal bond yields have jumped enough from historic lows they reached in November that investors are beginning to see some attractive ratios, creating opportunities for both buyers and holders of tax-exempt securities.

California and New York will share the new-issue spotlight in the long-term market this week, aiming to grab investors’ attention before the Labor Day hiatus and harness some of the demand which helped sell last week’s large deals.

The market for variable-rate demand obligations has improved this year and is primed for a turnaround, according to a research report Moody's Investors Service published Friday.

The tax-exempt market ended softer every session this week as selling pressure from municipal bond funds and illiquidity pushed bond prices lower.

Municipal bond mutual funds that report weekly had a $2.14 billion outflow in the week ended Aug. 21, according to Lipper FMI numbers, the 13th consecutive week of investor withdrawal and the biggest reduction this month.

The Bond Buyer’s weekly yield indexes continued to climb the week ended August 22.

Van Eck Global plans to start an exchange-traded fund consisting largely of Puerto Rico municipal securities, a move that may broaden demand for the commonwealth's debt as it re-enters the market for the first time since a new administration took office.

Inflows of $1.02 billion into tax-exempt money market funds boosted total net assets to $267.95 billion in the week ended Aug. 19, canceling out the previous week’s losses.