Municipal bond mutual funds had net outflows of only $95 million in the week ended May 11, according to Lipper FMI.
That was the lowest amount withdrawn from muni funds since investors began pulling cash out late last year, and was dwarfed by the nearly $800 million withdrawn the week before. But it was still the 26th week in a row that investors pulled money out of funds that report their flows weekly.
Assets climbed to $314.1 billion, up from $312.58 billion in total assets in the week ended May 4. That was due mainly to appreciation in the value of the funds’ holdings, which rose by $1.6 billion as prices have climbed for muni bonds due to a scarcity in new-issue supply. It was the sixth week in a row that net-asset values gained.
Among all municipal bond mutual funds, the four-week moving outflow average was down to $680.7 million from $870.6 million the week before.
Investors have withdrawn $50 billion during the stampede out of muni funds after they were spooked by rising interest rates and fears about the stability of the municipal bond market in general. Withdrawals peaked at $4 billion during the week ending Jan. 19.
