Inflows into all municipal bond funds increased from last week without climbing back to May's levels.
Municipal bond funds that report weekly had inflows of $306.9 million for the five days ending June 11, compared with $192.2 million the week before, according to Lipper FMI. They ranged between $943 million and $616.5 million a week through all of May.
"I think flows are going to slow a little bit, but I also think demand for munis will stay relatively strong through the majority of this year," Dan Heckman, senior fixed income strategist at U.S. Bank, said in an interview.
Assets of all weekly reporting municipal funds decreased to $292.4 billion down $292.6 billion the week before, Lipper FMI reported. The four-week moving average inflow fell to $449.3 million from $526.7 million.
"The basic technical balance continues with supply moderate and demand solid fueled by strong summer reinvestment flows as well as continued inflows to municipal bond mutual funds," Janney Capital Markets wrote in a report released on Friday.
Long-term municipal mutual funds that report their flows weekly had an inflow of $78.6 million following an inflow of $34.6 million the previous week, Lipper said.
Those assets declined slightly to $158.3 billion after ending at $158.6 billion the week before. The four-week moving average of the long-term fund was an inflow of $205.7 million from $294 million the week before.
High yield fund inflows increased to $151.1million from $145.9 million, their first increase after declining for two weeks in a row.
Assets increased to $440.8 billion, up from $439.8 billion. The four-week moving average inflow slipped to $282.4 million from $365.1 million.
