Markets

Eye-popping declines in muni yields on Thursday might finally prod investors into accepting low yields and prompt issuers to take advantage of some of the lowest borrowing costs in history.

Low new-issue volume and active early redemption of debt contributed to a decline in the amount of outstanding municipal debt in the second quarter to $2.89 trillion.

The summer doldrums are officially over, as issuance in the municipal market is expected to surge this week.

For the second straight week, and after six consecutive weeks of outflows, municipal bond mutual funds actually stayed positive.

The stability of the muni market was on display again this week, even as the risk of increased supply took hold of investor sentiment.

CHICAGO - Chicago will hold its first-ever investor conference next month as new Mayor Rahm Emanuel and his chief financial officer, Lois Scott, seek to bolster the city's strained fiscal image with the buyers of its debt.

Tax-exempt money market funds lost nearly half of what they gained last week, as investors yanked $2.63 billion in the week ended Sept. 12 and total net assets fell to $294.33 billion, according to the Money Fund Report, a service of iMoneyNet.com.

With Labor Day behind it, the municipal market will see a big surge in new deals this week, with estimated issuance rising to $4.65 billion, close to the weekly average this year.