Public finance

The primary market will be dominated by new-issue activity in the Northeast, led by a $1 billion Port Authority of NY & NJ consolidated bond issue that will be part of $5 billion of new volume expected.

Municipal bonds continued to rally the past week, with U.S. economic data suggesting a slow recovery just as mutual funds showed renewed investor interest in tax-exempt bonds

DOT expects the main federal highway infrastructure fund to run dry in August and post a $100 million deficit before the end of the fiscal year.

Municipal bond demand should increase in 2014 in an environment of expected higher interest rates, improved economic growth, lower issuance and richer valuations to Treasuries.

Bond insurer Syncora Guarantee Inc. asked the bankruptcy court overseeing Detroit's Chapter 9 case to delay the city's effort to secure a $120 million debtor-in-possession financing, saying the loan may need to be restructured in light of the court's rejection of a related swaps settlement.

CALIFORNIA

ALABAMA

The Bond Buyer's weekly yield indexes plunged in the week ended Jan. 16.

In another sign of the improving tenor of the municipal bond market, muni mutual funds recorded their first inflows in 34 weeks, Lipper FMI numbers showed.

Bankruptcy Judge Steven Rhodes rejected a $165 million settlement with Detroit's interest-rate swap counterparties, delivering a major blow to the swap counterparties and a victory for the city's bond insurers, retirees, and pension funds.

Leaders of the House Transportation and Infrastructure Committee have established a special bipartisan panel to promote the use of public-private partnerships across all modes of transportation, economic development, public buildings and water infrastructure

Senate Banking Committee chairman warns that Congress must act to protect the main source of federal transportation funding before it dries up.

Tax-exempt money market funds lost nearly half of the robust inflows they accumulated last week, as $2.47 billion of outflows marred the second week of 2014 and reduced total net assets to $272.24 billion in the week ended Jan. 13, according to The Money Fund Report, a service of iMoneyNet.com.

Despite the volatility and uncertainty that saturated the tax-exempt market in 2013, municipal bonds are in high demand at Milwaukee-based Robert W. Baird & Co. due to their attractive risk to reward and overall safety, according to senior vice president B. Craig Elder.

Michigan Gov. Rick Snyder has reportedly asked lawmakers to come up with $350 million to match private foundations' commitment to support Detroit's pension funds and art collection.

FLORIDA

ALABAMA

The nation's governors support maintaining the tax exemption for municipal bonds, though tax reform appears to be unlikely this year, leaders of the National Governors Association said Wednesday.

A state court ruling stopping California from selling $8 billion of bonds for high-speed rail could result in a cutoff of billion in federal matching funds as well.

Judge Steven Rhodes will rule Thursday afternoon on Detroit's interest-rate swap settlement in one of the most closely watched decisions of the city's historic bankruptcy case so far.