Markets

With outflows of $8.46 billion, tax-exempt money market funds fell to $428.91 billion in total assets during the week ending Sept. 21, according to the Money Fund Report, a service of iMoneyNet.com.

SAN FRANCISCO - After pricing its massive $8.8 billion revenue anticipation note sale on the low end of its projected yield range yesterday, California now turns to a general obligation bond sale planned in two weeks.

Retail investors and mutual funds snapped up municipal bonds in the second quarter, powering the fastest growth in outstanding state and local government debt in two years.

Municipal bond mutual funds continue to amass record quantities of cash from investors, building a pillar of demand for state and local government debt even as bond yields have never been lower.

In what is the single-largest note deal so far this year, California will issue $8.8 billion of revenue anticipation notes this week, more than double the estimated $4.37 billion of long-term volume expected to be priced in the primary market, according to Ipreo LLC and The Bond Buyer.

WASHINGTON — The Treasury Department’s guarantee program for money market funds expired Friday after generating $1.2 billion of fees from funds that participated in the program.

The Bond Buyer’s weekly yield indexes declined this week, as tax-exempts showed gains in nearly all the week’s sessions.

After slight inflows last week, tax-exempt money market funds fell by $5.33 billion and settled at $437.36 billion for the week ending Sept. 14, according to the Money Fund Report, a service of iMoneyNet.com. The drop coincided with the Sept. 15 corporate tax deadline.