Markets

Municipal bond issuance is expected to tick up this week, although it still remains at relatively low levels.

WASHINGTON — Securities and Exchange Commission chairman Mary Schapiro wants to move forward with regulations aimed at improving the stability of money-market funds, despite strong opposition from industry and state and local government groups.

Sturdy demand for tax-exempt paper and falling Treasuries pushed municipal yields in the intermediate and long ends of the curve lower throughout much of the week.

Municipal bond mutual funds saw a huge week of inflows, as investors continue to see strength in the market.

Tax-exempt money market funds generated inflows for the first time in nearly a month, as $2.84 billion of new cash flowed in and total net assets settled at $274.96 billion in the week ended May 7, according to the Money Fund Report, a service of iMoneyNet.com.

Record-low long-term municipal bond yields may generate the most press these days, but investors still see the most value in the intermediate part of the yield curve.

In a sign of continued financial stress, state and local governments again cut employment in April.

The industry needs a shake-up, Jules Kroll said. And he's trying to provide one, founding the Kroll Bond Rating Agency Inc. in 2010 with help from his son, Jeremy.

Volume for the municipal market continues to tick down while investor demand for tax-exempt paper remains robust.