Tax-exempt money market funds continue to show signs of gradual improvement this week. The pace of outflows have slowed and the attractive high rates compared to taxable money market funds are enticing yield-starved investors looking for buying opportunities as Congress continues to grapple with the nation's current economic slump.

Even though tax-exempt money market funds lost $6.59 billion and settled at $479.84 billion for the week ending Sept. 29, that is a far cry from the $29.01 billion they lost the previous week when they settled at $486.43 billion during one of the most historically volatile periods for the financial industry, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.

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