Buy side

Most of The Bond Buyer's weekly yield indexes increased this week, despite tax-exempt yields declining slightly in the majority of the week's sessions and the market carrying an overall firmer tone.

Tax-exempt money market funds closed the second quarter with outflows of $3.87 billion, which caused total assets to settle at $456.11 billion for the week ending June 29, according to the Money Fund Report, a service of iMoneyNet.com.

Municipal bond mutual funds, it seems, can do no wrong.

After accommodating some heavy June volume, the municipal market could see its first dose of summer doldrums this week as a pair of airport revenue offerings are priced amid a relatively light calendar, estimated at $1.97 billion, of primary market offerings ahead of the July 4 holiday, according to Ipreo LLC and The Bond Buyer.

Nearly all of The Bond Buyer’s weekly yield indexes declined this week, as the market firmed up in most of the week’s sessions.

Outflows among tax-exempt money market funds increased to $3.03 billion for the week ending June 22, as total assets fell to $459.98 billion, according to the Money Fund Report, a service of iMoneyNet.com.

When asked why anybody would buy a corporate bond now that a taxable municipal bond alternative is available, Peter Coffin offered an inspired answer: “I don’t know.”

Legislation authorizing the U.S. Food and Drug Administration to regulate cigarettes beat back a rally in tobacco bonds this month.

The 10-year muni-Treasury ratio is back to normal. Whether it will stay there is debatable.

The torrential downpour of cash upon municipal bond mutual funds has eased to mere rainfall.

The municipal market this week will again see a generous slate of new issues, led by $800 million of personal income tax revenue bonds from the Dormitory Authority of the State of New York in the long-term market and $500 million of Idaho tax anticipation notes in the short-term market.

New York Life Investment Management agreed to buy the municipal bond firm Mariner Municipal Managers for an undisclosed amount, the company said this week.

The quarterly corporate-tax payment deadline on Monday was a key contributor of noticeable outflows among money market funds this week.

The Bond Buyer’s yield indexes were narrowly mixed this week, as three sessions of losses were sandwiched between two days of gains.

An atrocious three months for stocks chased retail investors to the safer perches of government bonds in the first quarter of the year, enabling state and local governments to continue borrowing.

On the heels of the minor weakness that crept into both the short and long ends of the municipal market late last week and the glut of new supply that investors digested, this week's primary market again calls for a generous slate of new issues that will continue to test buyers' appetites.

Investors continued to lavish heaps of cash on municipal bond mutual funds last week as people shrugged off the surge in Treasury yields and kept taking more risk.

Mitchell Savader’s job is to stay one step ahead of the rating agencies.

The Bond Buyer’s yield indexes climbed this week as tax-exempt yields edged higher against a large new-issue calendar and a weakening Treasury market.

The municipal bond market grew in the first quarter at a slower pace than in pre-crisis years as the industry coped with a severe recession and life without bond insurance.