Markets

Following Friday's shellacking, the municipal market has largely paused to catch its collective breath. Participants report activity in trades of smaller size, as the market overall is slackening somewhat to get deals done.

The municipal market sees traces of activity Monday, showing a slightly softer market.

Municipal market volume may improve this week from last, though municipal experts say issuance continues to be thin for this time of the year as the spring reinvestment season approaches.

Municipal bond mutual funds saw inflows into weekly-reporting funds, at $22 million, for the first time in 10 weeks.

The Bond Buyer's weekly yield indexes were mixed the week ended May 9.

Moody's Investors Service said the settlement between MBIA Inc. and Bank of America Corp. is a credit positive for the company and its subsidiaries, but kept their ratings on review for downgrade.

Modest inflows arrived on the heels of the $4.49 billion that escaped in the week ended April 29 — typically the tail end of heavy seasonal outflows associated with individuals and corporations paying income tax debts to Uncle Sam.

Frank Chin, co-head of public finance at Citi, is a 35-year muni bond veteran who worked in a period of dramatic change that has shaped the aviation and muni bond industries.

A $300 million Illinois revenue offering will lead the activity in the primary market this week as part of an estimated $4.97 billion in new volume, which is on the lighter side compared due to the absence of large, billion-dollar deals that have dominated the calendar in recent weeks.