Markets

The Bond Buyer's weekly yield indexes increased the week ended August 1.

Long-term municipal bond volume fell 13% in July, as rising interest rates and headline scares generated by Detroit's record bankruptcy filing and Chicago's downgrade drove investors from the market.

Municipal bond mutual fund exposure to the city of Detroit is not as heavy as initially projected, new analysis by an investment research firm shows.

The municipal market may stabilize in the coming week, helped by a calendar that is moderate in size, diverse in composition and rich in familiar and attractive names, market watchers say.

Bold headlines from Detroit's bankruptcy filing and Chicago's downgrade provided strong drivers for the ninth straight week of outflows from municipal bond mutual funds, at $1.23 billion.

The Bond Buyer's weekly yield indexes increased the week ended July 25.

Investor demand for tax-exempt money market funds withered, as the industry registered another $475.3 million in outflows.

Many large managers of municipal bond funds with Detroit paper said they haven't heard any panic from their investing clients since the city filed for bankruptcy and many of their funds have lost value.