Markets

As skittish investors seek out the safest possible investments to protect themselves from the financial markets' latest crisis, short-term yields in the U.S. Treasury market have plunged noticeably lower over the past week as a result of a massive flight to quality, while tax-free money market yields have increased dramatically.

The Bond Buyer's weekly yield indexes rose dramatically, as tax-exempts grew continuously weaker amidst this week's credit crunch.

A $1.3 billion North Carolina education financing will command the spotlight in the primary market this week as the municipal market is expected to see an estimated $6 billion in competitive and negotiated new-issue volume, compared with last week's revised $4.2 billion, according to Thomson Reuters.

Weekly reporting municipal bond mutual funds had a net inflow of $212 million during the period ending Sept. 10, AMG Data Services reported.

Nearly all The Bond Buyer's weekly yield indexes declined this week, as municipals mostly followed the Treasury market in a mixed week during which gains outweighed losses.

After a two-week slump, tax-exempt money market funds were back in positive territory during the week ending Sept. 8, taking in $9.84 billion of inflows to settle at $524.12 billion in total assets, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.

Weekly reporting municipal bond mutual funds had a net inflow of $252 million during the period ending Sept. 3, AMG Data Services reported.

The Northeast region will take center stage in this week's primary market when a trio of sizable deals - led by a $467.2 million revenue sale and auction-rate conversion from the Dormitory Authority of the State of New York - is expected to be priced as part of an estimated $4.90 billion in total new-issue volume, according to Thomson Reuters.

Tax-exempt money market fund assets took another noticeable dip during the week ending Sept. 1, suffering a net decline of $6.28 billion to settle at $514.3 billion, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.

Most of The Bond Buyer's weekly yield indexes declined this week, as the municipal market was largely unchanged to slightly firmer through most sessions as investors returned to work from a long weekend.