Buy side

The Texas Department of Transportation will lead the week's new-issue activity with a $900 million sale of general obligation mobility-fund refunding bonds as volume in the municipal market is projected to stay above $6 billion for a third straight week.

As state and local governments make efforts to prepare for climate change, credit analysts are watching closely to see how impacts from weather-related events might affect credit quality.

Inflows into all municipal bond funds increased from last week without climbing back to May's levels.

The Bond Buyer's muni bond indexes were mixed in the week ending June 12.

The supply shortage in the tax-exempt market in 2014 is making summer reinvestment season especially challenging for cash-laden investors.

Investment research firm Morningstar said it will no longer provide municipal bond credit analysis or commentary.

A $1.7 billion Los Angeles Unified School District general obligation refunding planned for this week will help boost volume to the highest in three months, and help satisfy pent-up demand among eager, cash-flush investors, according to municipal traders.

This year's higher taxes played a secondary role as demand for municipal bonds surged after April 15 tax deadline passed, according to analysts.

The Bond Buyer's muni bond indexes mostly weakened in the week ending June 5.

Hedge funds and other non-traditional buyers will exit the municipal market place if munis continue to grow more expensive relative to Treasuries, BlackRock said.

Municipal bond funds reported inflows slowed to $192.27 million for the week ending June 5 from $634.48 million the week before, according to Lipper FMI.

Outflows from tax-exempt money market funds slowed to $692.4 million in the week ended June 2, as total net assets fell to $256.41 billion, according to The Money Fund Report, a service of iMoneyNet.com.

Local Michigan general obligation bonds and Chicago debt represent pockets of risk in an otherwise-improving municipal bond market, Charles Schwab said Friday.

Weekly municipal bond volume is forecast to jump to $6.5 million in the coming week, providing a measure of relief to a supply-starved market.

The Bond Buyer's muni bond indexes mostly strengthen in the week ending May 29.

Municipal mutual funds reported inflows declined to $634.5 million in the week ended May 28 from $663.6 million of inflows the week before.

Investors' ravenous demand for high-yield municipal bonds has created an optimal environment for lower-rated issuers, analysts say.

Airport deals will dominate the shortened holiday week, as volume drops to a scheduled $4.1 billion from $6.24 billion in the past week.

The Virginia Tobacco Settlement Financing Corp. plans to draw on reserves Dec. 1 because revenues won't be sufficient to pay debt service.

A de Blasio administration official disputed a Barclays report that called New York City's agreement with the United Federation of Teachers a credit negative.