Public finance

The hemorrhaging of cash from municipal bond mutual funds finally stopped in the week ended June 8.

The municipal market can expect $5.22 billion in new issuance this week, with issuers in Los Angeles and Utah leading the way with deals in excess of $600 million.

ARKANSASLonoke School District No. 1 of Lonoke CountyJun 9, 2011 . . . . . . $5,910,000

ALABAMARoanoke Utilities BoardJun 8, 2011 . . . . . . $7,820,000

Numbers from the Federal Reserve's flow of funds for the first quarter this year place total muni bond debt at $2.905 trillion. That compares to $2.925 trillion in the last quarter of 2010, according to Fed numbers, and $2.843 trillion over the same period last year.

Municipal bond index yields fell modestly over the week. Rates measured by the one-year note, as well as 11- and 20-year bond indexes slipped by up to two basis points.

Tax-exempt money market funds regained all of last week's losses — and then some — as $2.98 billion of inflows brought total net assets to $309.55 billion for the week ended June 6, according to the Money Fund Report, a service of iMoneyNet.com.

ARKANSASBald Knob School District No. 1 of White CountyJun 8, 2011 . . . . . . $7,245,000

ALABAMABirmingham Water Works BoardJun 7, 2011 . . . . . . $133,565,000

Table as of: 06/07/2011 13:21 PM Invisible Supply Issuer and purpose Amount* Approval

ARKANSASMountain Pine School District No. 46 of Garland CountyJun 7, 2011 . . . . . . $740,000

ALABAMAMuscle Shoals Electirc BoardJun 7, 2011 . . . . . . $2,555,000

When the Build America Bond program ended there were two schools of thought. One argued that BABs would become an orphan class, with prices in the secondary market suffering from illiquidity. Another group thought there would be some scarcity value to the product and they would appreciate in value.

Table as of: 06/06/2011 15:14 PM Invisible Supply Issuer and purpose Amount* Approval

IOWAAltoona (City)Jun 6, 2011 . . . . . . $1,500,000

ALASKAKoyukuk (City)Jun 3, 2011 . . . . . . $71,715,000

NEW YORKArkport Central School DistrictJun 3, 2011 . . . . . . $5,300,000

ALABAMANorthport (City)Jun 2, 2011 . . . . . . $9,405,000

Individual investors pulled cash from municipal bond mutual funds for the 29th straight week, according to Lipper FMI. While the rate of withdrawals appeared to be slowing in early May, the pace has picked up again since then.

The municipal market can expect $4.68 billion in new issuance this week, with a half dozen deals above $250 million contributing to volume and putting the projected total around the average for the year.