Markets

After two steady weeks of inflows, tax-exempt money market funds fell a modest $158.5 million to $327.33 billion in total net assets for the week ending Nov. 22, according to the Money Fund Report, a service of iMoneyNet.com.

Nearly all The Bond Buyer’s weekly yield indexes for long-term bonds declined during this holiday-shortened week, bouncing back from a significant sell-off that permeated the market since the start of the month.

Skittish investors withdrew a stunning $3.107 billion from municipal bond mutual funds in the week ending Nov. 17 — the single worst week of outflows and the largest departure of cash in 10 years, according to weekly fund flow data from Lipper FMI.

The municipal market is expected to catch its collective breath this week as new volume tapers off by about $2.5 billion from the $7.25 billion that smothered the market last week, sparking a sell-off that sent benchmark yields to 15-month highs and caused the cancellation of a handful of deals, according to Ipreo LLC and The Bond Buyer.

Anyone considering buying a taxable municipal bond might want to get a quote on some municipal credit-default swaps first.

The Bond Buyer’s weekly yield indexes increased dramatically this week amid a supply-driven rout that persisted through Wednesday and prompted a number of issuers to postpone pricing.

Modest gains continued to boost tax-exempt money market funds for a second week in a row, as $403.7 million arrived during the week ending Nov. 15 to push total net assets to $327.49 billion, according to the Money Fund Report, a service of iMoneyNet.com.

The story in the municipal bond market this month has been bleak. The story in the municipal bond exchange-traded fund ­market has been even bleaker.