Public finance

With outflows totaling $5.94 billion, tax-exempt money market funds settled at $468.57 billion in total assets for the week ending April 27, according to the Money Fund Report, a service of iMoneyNet.com.

Reports that the municipal bond market found its savior may have been premature.

For the past seven years, Peter Demirali has urged clients to put money into taxable municipal bonds — a small, neglected sector of the industry.

KANSASDerby (City)Apr 28, 2009 . . . . . . $2,755,000

ARIZONAArizona Board of RegentsApr 28, 2009 . . . . . . $202,370,000

ARKANSASMarion School District No. 3 of Crittenden CountyApr 28, 2009 . . . . . . $4,600,000

ALABAMABaptist Health Health Care Authority, An Affiliate of UAB Health SystemApr 16, 2009 . . . . . . $111,195,000

By the end of 2007, investors recognized the relationship between municipal bond yields and Treasury yields did not mean what it used to.Click to see larger version of chart.Now, some investors have taken it a step further. Some ignore the relationship altogether.

IOWAGMG Community School DistrictApr 27, 2009 . . . . . . $1,700,000

ALABAMAJackson (City)Apr 28, 2009 . . . . . . $3,000,000

GEORGIAAlpharetta (City)Apr 24, 2009 . . . . . . $8,415,000

ARIZONAArizona Transportation BoardApr 23, 2009 . . . . . . $55,420,000

Investors poured the most money into municipal bond mutual funds in years last week amid a powerful rally in the tax-exempt market.

With underwriters and investors still buzzing about last week's historic Build America Bond blitz in California, the municipal market is gearing up for the arrival of another significant slate - highlighted by $2 billion of Florida bonds - that will bring an estimated $6.28 billion in total issuance to the market in the last week of April, according to Ipreo and The Bond Buyer.

Tender-option bond programs last year lost a lot of money on a controversial premise: that long-term municipal bond yields are fundamentally and inefficiently too high.

CALIFORNIAOrange County Sanitation DistrictApr 23, 2009 . . . . . . $200,000,000

ARIZONAArizona State University Nanotechnology LLCApr 22, 2009 . . . . . . $35,040,000

Tax-exempt money market funds fell by $6.96 billion to end the week of April 20 with $474.51 billion in total assets, according to the Money Fund Report, a service of iMoneyNet.com.

The Bond Buyer’s weekly yield indexes declined this week on the back of a surge of Build America Bonds in the primary market, including more than $5 billion of the new securities from California.

FLORIDAJEAApr 21, 2009 . . . . . . $64,305,000