Public finance

IOWARobins (City)Jan 20, 2011 . . . . . . $3,130,000

CALIFORNIASan Francisco Airport Commission (City and County)Jan 20, 2011 . . . . . . $155,350,000

Investors established a new record for withdrawals from municipal bond mutual funds last week as headline risk continued to chase people from state and local government debt funds.

Volatility and speculation about defaults and bankruptcies in the municipal market continue to spook issuers and investors, affecting volume in the primary market.

ALABAMAAnniston Public Building AuthorityJan 20, 2011 . . . . . . $16,170,000

FLORIDAFlorida State Board of GovernorsJan 20, 2011 . . . . . . $22,145,000

The sophisticated investor in retail municipal bonds has ­remained calm the past few months even as mutual funds have dumped state and local ­government debt by the truckload.

Tax-exempt money market funds posted their first decline since mid-December as outflows of $4.35 billion trimmed total net assets to $329.91 billion for the week ended Jan. 17, according to the Money Fund Report, a service of iMoneyNet.com.

Most of The Bond Buyer’s weekly yield indexes increased this week as an earlier sell-off that pushed 30-year yields beyond the 5% threshold outweighed the rally that followed.

ARIZONAChandler (City)Jan 19, 2011 . . . . . . $9,925,000

CALIFORNIAEast Bay Municipal Utility DistrictJan 19, 2011 . . . . . . $65,905,000

IOWASanborn Municipal Utility SystemJan 18, 2011 . . . . . . $590,000

CALIFORNIALarkspur School DistrictJan 18, 2011 . . . . . . $8,135,000

COLORADOOlde Towne Metropolitan DistrictJan 13, 2011 . . . . . . $910,000

Mutual funds have emerged as the dominant source of selling pressure for state and local government paper in the new year as investors keep pulling out their money, forcing fund complexes to sell bonds into an already jittery market.

Volume will be on the light side again this week, with $3.85 billion coming to market at a time of rising interest rates, poor liquidity, and overall market uncertainty, according to Ipreo LLC and The Bond Buyer.

ALABAMATarrant (City)Jan 12, 2011 . . . . . . $1,655,000

CALIFORNIAHillsborough City School DistrictJan 13, 2011 . . . . . . $143,370,000

The Bond Buyer’s long-term weekly yield indexes rose this week as media reports about the possibility of a string of municipal bankruptcies weighed on ­investors.

Tax-exempt money market funds took in new cash for the second time in as many weeks in 2011, gaining $2.098 billion to boost total net assets to $334.26 billion for the week ending Jan. 10, according to the Money Fund Report, a service of iMoneyNet.com.