Markets

Outflows among tax-exempt money market funds caught fire in the week ended Nov. 28, as $1.56 billion exited the funds and total net assets decreased to $284.67 billion, according to the Money Fund Report, a service of iMoneyNet.com.

The municipal bond market followed up a holiday week with relatively steady yields in the face of increasing supply, slack Treasuries and a stock market rally.

Assets of tax-exempt money market funds fell by a modest $150 million as total net assets finished at $286.23 billion in the week ended Nov. 21, according to the Money Fund Report, a service of iMon­eyNet.com.

Traders anticipate that the recent delicate balance between supply and demand in the muni market will be maintained even as issuance ramps up this week in the face of rollover funds.

Analysts continue to warn that employee pensions and retirement benefits are a growing problem for municipal government finances.

The December-January reinvestment season in the municipal bond market will arrive at a time of rock-bottom yields and historically low new issuance.

Investors seeking diversity, liquidity and competitive yields when compared to other fixed-income products are trying a relatively new alternative: municipal bond exchange-traded funds.