While taxable money market funds are still seeing healthy inflows, tax-exempt funds suffered outflows of $1.96 billion for the week ending Oct. 27 - a stark comparison to last week's inflows of $7 billion and the gains of the last three weeks in general, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.

The 534 tax-exempt funds ended the week with $495.91 billion in total assets, down slightly from the $497.86 billion they accumulated last week after amassing inflows of $7 billion amid increased demand and liquidity in the short-term market.

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