Text Arrange

It seems as if Text lettering does not honor Arrange ordering. I want the appearance of letters inside a bubble, but I cannot place the letters behind a circle with reduce alpha. The Letters are always in front.

Please advise.

Indeed this is the case. The way that the software handles text and the way that it handles drawings are different. The only way to achieve this look would be to put the text on a separate drawing layer from the bubble, then you can place the bubble directly on top of the text. Hopefully that solves your problem.