Another week in the market, another week of solid inflows for municipal bond mutual funds.
Muni bond funds recorded $555 million of inflows from funds that report their flows weekly for the week ended June 20, according to Lipper FMI. They have seen inflows for 10 consecutive weeks.
The numbers jumped from those of the previous week. There were net inflows of $365 million the week ended June 13. The market has now seen positive flows for 39 of the past 42 weeks.
While last week’s volume measured as the year’s heaviest, calendar deals this week, estimated total $8.33 billion, found an investment community flush with money. Yields from last Friday failed to budge at the two-, 10- or 30-year sections of the curve. Traders said the new issuance was priced reasonably well.
Tax-exempt yields outperformed their Treasury cousins on all but the long-end of the curve, where yields for both markets held their levels over the period. Muni ratios to Treasuries are still cheap, with maturities across the curve all settling above 103% by Thursday’s close. But the two-year got richer on the week through rising Treasury yields at the short end on the week.
This past week, assets for all funds that report their flows weekly rose to $299.8 billion from $299.1 billion the previous week.
The value of the holdings for weekly reporting funds increased by $172 million. The week before, they fell by $481 million.
The four-week moving average for all municipal bond mutual funds that report their flows weekly saw a $488 million inflow, inching up from a $483 million gain the week before.
Long-term bond funds had another solid week of inflows, as well. They continue to comprise the bulk of the overall figure for muni bond funds.
Long-term bond funds that report their flows weekly saw inflows to the tune of $354 million. That compares with $318 million the week prior.
High-yield muni funds flows remained in the black. They have seen inflows for 13 consecutive weeks, and 27 of the previous 28 weeks.
Funds that report weekly saw $155 million in inflows, Lipper said. The previous week, high-yield funds reported $165 million in inflows.
Assets for high-yield funds that report their flows weekly increased to $40.86 billion, up from $40.65 billion the previous week.
The value of the holdings for weekly reporting funds rose by $58.4 million. Last week, they decreased by $48.4 million.
The four-week moving average for all high-yield muni bond funds that report their flows weekly was almost $160 million inflow, down a touch from a $163 million inflow the week before.