Public finance

Table as of: 12/17/2010 12:58 PM Invisible Supply Issuer and purpose Amount* Approval

MASSACHUSETTSSaugus (Town)Dec 17, 2010 . . . . . . $2,548,000

ARIZONAPima County Metropolitan Domestic Water Improvement DistrictDec 16, 2010 . . . . . . $6,630,000

Investors continued to ferry cash out of their municipal bond mutual funds at historic rates last week as a tumultuous sell-off sowed fear among buyers.

The flood of new supply that has inundated the municipal bond market the past month will die out this week as issuers take a breather from selling new debt.

INDIANAClark CountyDec 16, 2010 . . . . . . $1,450,000

ALABAMAPerry CountyDec 13, 2010 . . . . . . $4,500,000

The Bond Buyer’s weekly yield indexes increased this week, due largely to substantial weakness on Monday and Tuesday.

Tax-exempt money market funds lost a sizable $2.09 billion, dropping total net assets to $326.88 billion for the week ending Dec. 13 and erasing nearly all gains from the previous week, according to the Money Fund Report, a service of iMoneyNet.com.

CALIFORNIASan Francisco (City and County) Public Utilities CommissionDec 15, 2010 . . . . . . $180,960,000

ALABAMALincoln (City)Dec 14, 2010 . . . . . . $6,030,000

The municipal market has become so turbulent and illiquid that even investors who find tax-exempt yields appealing are sitting on their hands. The recent rout in tax-exempt bonds has some portfolio managers, investors, and dealers beginning to sniff at yield levels that could invite buyers back into the market.

INDIANAFulton CountyDec 14, 2010 . . . . . . $1,600,000

CALIFORNIARim of the World Unified School DistrictDec 13, 2010 . . . . . . $11,450,000

A change in the methodology the Federal Reserve uses to measure who owns municipal bonds has masked the growth in foreign ownership of state and local government debt.

CALIFORNIAPasadena (City)Dec 13, 2010 . . . . . . $30,000,000

ARIZONAFlorence Industrial Development AuthorityDec 13, 2010 . . . . . . $6,995,000

MASSACHUSETTSLynnfield (Town)Dec 10, 2010 . . . . . . $179,500

ALASKAAlaska Municipal Bond BankDec 10, 2010 . . . . . . $4,765,000

Municipal bond mutual funds are hemorrhaging cash at historic rates due to a fearful investor reaction to the public drubbing of state and local government debt.