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A Puerto Rico infrastructure financing and a Detroit water revenue sale will lead the activity in the primary market this week as volume is expected to dip slightly from last week.

Reinvestment cash jolted the municipal bond market into life this past week.

In their largest one-week move so far this year, tax-exempt money market funds gained a stunning 1.9%, or $5.27 billion, from last week, bringing assets in the week ended Dec. 5 to $289.94 billion, according to the Money Fund Report, a service of iMoneyNet.com.

For online vendors, this year's record sales for Cyber Monday may have been like Santa arriving early, but for states and municipalities that collect sales taxes, it was more like getting a lump of coal in their Christmas stockings.

Following last week's post-Thanksgiving feast, the municipal market will continue to usher in December with an equally hearty slate of primary market deals. Yields remained mostly firm on Friday as investors clamored for high-quality paper in the scarce secondary.

Outflows among tax-exempt money market funds caught fire in the week ended Nov. 28, as $1.56 billion exited the funds and total net assets decreased to $284.67 billion, according to the Money Fund Report, a service of iMoneyNet.com.

The municipal bond market followed up a holiday week with relatively steady yields in the face of increasing supply, slack Treasuries and a stock market rally.

Assets of tax-exempt money market funds fell by a modest $150 million as total net assets finished at $286.23 billion in the week ended Nov. 21, according to the Money Fund Report, a service of iMon­eyNet.com.

Traders anticipate that the recent delicate balance between supply and demand in the muni market will be maintained even as issuance ramps up this week in the face of rollover funds.

Analysts continue to warn that employee pensions and retirement benefits are a growing problem for municipal government finances.

The December-January reinvestment season in the municipal bond market will arrive at a time of rock-bottom yields and historically low new issuance.

Investors seeking diversity, liquidity and competitive yields when compared to other fixed-income products are trying a relatively new alternative: municipal bond exchange-traded funds.

Some market participants are concerned that the current version of the Volcker Rule would hurt the municipal bond market.

The Thanksgiving holiday is expected to significantly cool off new supply in the primary market this week.

Municipal bond mutual fund inflows fell somewhat from last week's tremendous infusion, but they were still strongly in the black. Muni bond funds saw a sixth straight week of inflows, and a 10th week of them out of 11.

The municipal market has been gorging on a lot of new issuance over the past few weeks, but apparently not more than it can digest.

Tax-exempt money market funds lost $530.1 million and settled at $286.24 billion in total net assets in the week ended Nov. 14, according to the Money Fund Report, a service of iMoneyNet.com.

A new study by the Kroll Bond Rating Agency on municipal bond defaults dating back to the Great Depression casts a positive light on the muni industry, saying there will be "no material increase" in defaults over the next three to five years.

Investors this past week gave the tax-exempt market a big boost of confidence with their heaviest inflows to municipal bond mutual funds since September 2010.

The waves of issuance rolling into the municipal primary market the past few weeks continue to grow. Last week's volume, at more than $9 billion, approached record territory for 2011, and this week's anticipated issuance should easily set a new high for the year, at nearly $12 billion.