Municipal bond funds

Bank holdings in municipal securities continue to decline, as retail investors and mutual funds increase their holdings.

Municipal bond yields moved lower in secondary trading as some big deals were sold.

Municipal yields and issuance plans both rose, showing market participants aren't uncertain about the meeting, with a quarter point cut in interest rates baked in.

Municipal traders and managers said the tax-exempt market’s early strength translated into weakness before the end of trading — due to taxable and overseas influences.

Los Angeles and Broward County deals were offered while some say the municipal market feels "heavy" and in retreat.

With supply looking up, traders and analysts expect new issues to be well absorbed even if Treasuries correct futher.

The Chicago Public Schools also came to market with a $349 million GO deal.

California's $2.4 billion GO deal was priced for retail investors on Wednesday.

The market will see $7.6 billion of bonds plus a $1 billion note sale coming up in a holiday-shortened week.