Markets

Closed-end municipal bond funds continue to enjoy shelter from the turbulence plaguing the rest of the sector.

Investors pulled cash out of municipal bond mutual funds last week for just the third time in a year and a half, despite a strong week for state and local government debt.

As the market closes the books on June’s low volume, investors with proceeds from recent coupon and maturity payments to reinvest hope July perks up following this holiday-shortened week’s relatively light calendar.

Nearly all of The Bond Buyer’s weekly yield indexes declined this week as tax-exempts grew firmer amid light secondary trading.

Tax-exempt money market funds lost $1.44 billion in the week ending June 28, settling at $350.9 billion, according to the Money Fund Report, a service of iMoneyNet.com.

The payments that cigarette manufacturers make to the states are dwindling as people smoke less, posing the latest setback to tobacco bonds — a sector that’s enjoyed little good news since the financial crisis.

Municipal bond mutual funds commanded a modest sum of new money last week. Muni funds reported $151.5 million in new money from investors during the week ended June 23, according to Lipper FMI.

Los Angeles serves up a $1.2 billion tax and revenue anticipation note sale in the short-term market this week while issuers in New York deliver a pair of substantial deals in the long-term market.