Markets

Federal Reserve Chairman Ben Bernanke has spoken. But the municipal market, after a period of buying Wednesday morning, has stabilized as the session crossed into the afternoon.

Tax-exempt yields started Wednesday's trading session lower in reaction to comments Federal Reserve Chairman Ben Bernanke made to Congress regarding the status of the accommodative monetary policy currently in place.

Activity in the municipal market has picked up as some of the week's calendar arrives, providing an overall tone of strength.

The municipal market sauntered out of the gate Tuesday as participants expect the large calendar to set the tone for the week.

Municipal market participants continue to hold off in preparation for the large new-issue calendar.

Two Basel III rule changes regulating government agencies adapted recently to the U.S. markets are likely to damp interest in municipal bonds as investments for large banks.

The municipal bond market is gearing up for what it expects will be a strong primary this week.

Municipal issuers are gearing up to sell more than $9 billion of new issuance this week -- dominated by a $2.9 billion Texas transportation offering -- and hope their financings benefit from the momentum of the previous two trading sessions.

Inexpensive prices on new issues lured buyers back into the marketplace as municipal bond market resumed its slump during the past week.