Upholding a recent downward trend that began in early 2011, the household sector continued to pare its holdings of municipal debt in the third quarter, declining by $65.9 billion, or 3.6%, to $1.75 trillion, one of its lowest levels of ownership since 2008, according to new data released last week by the Federal Reserve Board.

Although the latest holdings are down from $1.816 trillion in the prior quarter, households still managed to own nearly half of the $3.719 trillion of municipal debt outstanding as of Sept. 30, according to the data, which was released Dec. 6.

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