WASHINGTON — The market for variable-rate demand obligations and auction-rate securities continues to shrink, with outstanding par value of both types of securities tumbling in the 12 months ending in April, according to a report released Tuesday by the Municipal Securities Rulemaking Board.

Outstanding VRDOs totaled $283 billion at the end of April, a decline of 12% from $320 billion in April 2011, and down 17% from $339 billion during the same period in 2010. VRDOs are long-term bonds that function as short-term securities because investors can put them back to the issuer at regular intervals.

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