Markets

Tax-exempt money market funds lost $5.09 billion during the week ending April 28, causing total assets to fall to $489.6 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 tax-exempt yields declined slightly in most of the week's sessions.

Weekly reporting municipal bond mutual funds had a net inflow of $845 million during the period ending April 23, AMG Data Services reported.

Two sizable California offerings and a large North Carolina power deal will lead the primary activity this week as the municipal market faces a slight lull in new-issue volume on the heels of a supply swell last week.

The Bond Buyer's weekly yield indexes rose this week, as tax-exempt yields either remained unchanged or climbed higher in each of the week's sessions, and a weaker tone permeated throughout.

Tax-exempt money market fund assets declined by $7.27 billion for the week ending April 21 - nearly triple the outflows that they lost the prior week ahead of the income tax deadline, according to the Money Fund Report, a service of imoneynet.com.

Puerto Rico will headline primary market activity this week with its scheduled sale of $1.1 billion of general obligation bonds, along with a handful of education deals and at least two sizable auction-rate conversion deals.

Weekly reporting municipal bond mutual funds had a net inflow of $450 million during the period ending April 16, AMG Data Services reported.

Recently, in the aftermath of the bond insurance crisis, there have been cries from members of Congress and state and local finance officers that the recent low default rate on governmental issuers of municipal bonds relative to all global borrowers begs for a wholesale upgrading of muni bond ratings. More than likely, bond ratings on state and local government obligations would substantially be lifted to triple-A and double-A levels.

Most of The Bond Buyer's weekly yield indexes rose this week, as municipal yields rose in almost all the week's sessions.