Municipal bond mutual funds continue to amass record quantities of cash from investors, building a pillar of demand for state and local government debt even as bond yields have never been lower.

Investors entrusted $1.51 billion to muni funds that report their figures weekly during the week ended Sept. 16, according to Lipper FMI. That was the highest weekly inflow reported since Lipper started keeping track in the early 1990s.

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