Fixed income

The municipal market, sliding leisurely through its slow season, anticipates a slight uptick in issuance the week of Aug. 6. Industry estimates hold that muni bonds expected to be sold during the week should total $6.35 billion, versus a revised $5.93 billion last week. Then, the market waded through a sluggish week in the primary and secondary that did little to yields, which continue to hover near record lows.

The tax-exempt market turned to the primary market for direction Tuesday as traders looked to see how this week's balance of supply and demand would play out. Munis ended flat for the day after two sessions of losses.

Puerto Rico's debt load, exceeding $60 billion, and pension liabilities are a challenge to the island's fiscal ability and investors should limit their exposure, cautions Alan Schankel of Janney Capital Markets.

The tide of investor demand stays high for municipal bond mutual funds. A strong week of record-low muni bond yields on the intermediate and long ends of the curve marked the week ended July 25.investor-demands-keeps-muni-fund-flows-high

The municipal bond market continues to strengthen as positive supply and demand factors this week push tax-exempts higher.

The tax-exempt market continued its rally Tuesday as positive supply and demand factors, as well as weaker stock markets due to European worries, buoyed safe haven assets.

If municipal bond market observers feel there are other time bombs out there waiting to detonate that resemble the accusations surrounding the manipulation of Libor, they won't be found in variable-rate debt tied to the SIFMA municipal swap index.

Phillip D. Murphy, a former manager of municipal derivatives products at Banc of America Securities LLC, now Bank of America Merrill Lynch, was indicted by a federal grand jury on three counts of conspiracy and wire fraud in connection with a fraudulent scheme to rig bids for municipal-bond related investment agreements.

Tax-exempt money market funds lost $2.03 billion -- nearly half of the unusually high bounty they amassed last week – as total net assets dipped to $272.67 billion in the week ended July 16, according to The Money Fund Report, a service of iMoneyNet.com.

Municipal bond mutual funds continue to see strong and growing demand from investors. Even though, the week was marked by modest moves in prices throughout most of the yield curve, money poured into bond funds for the week ended July 18.

The municipal bond market continued its rally Monday, despite limited new issuance in the primary market. Strong demand has once again pushed the 30-year yield to a new record low.

The market continued to show its confidence in municipal bond mutual funds with strong inflows following a holiday week of relative inactivity.

Charles Schwab Investment Management, Inc. has launched the Laudus Mondrian Global Fixed Income Fund (LMGDX) to bet on developed, U.S., and emerging market bond markets.

The municipal bond market rallied Tuesday as new issuance found willing investors and tax-exempt yields outperformed those of Treasuries.

A tightening of municipal bond yields in various pockets of the secondary market highlighted an otherwise quiet trading session Monday.

The holiday week slowed the tax-exempt market down to a crawl, but investors still invested in municipal bond mutual funds. Those funds that report their flows weekly saw $317 million of inflows for the week ended July 4.

In the first six months of 2012 the bank handled 242 issues and $26.1 billion in par value, giving it a 13.6% share of the new issue municipal bond market by par value.

An uninspiring week of frozen yields in the municipal bond market could not put a stop to the inflows pouring into muni bond mutual funds. Muni bond funds saw $625 million of inflows from funds that report their flows weekly for the week ended June 27, compared with net inflows of $555 million the week ended June 20.

Investors pulled an estimated $1.85 billion from U.S. equity funds the week ended June 20, almost three times the $620 million withdrawn a week earlier.

New Rule G-43 requires that broker's brokers make reasonable efforts to obtain fair and reasonable prices when conducting secondary-market "bid-wanted" auctions.