Municipal bond mutual funds that report their flows weekly saw $853.91 million of share redemptions in the week ended April 13, down from $1.14 billion the week before, according to Lipper FMI.
The funds have seen outflows for 22 consecutive weeks. On Friday, municipal bonds were seeing some strong bids in the secondary market and aggressive trading in the intermediate range where yields were falling one to three basis points, according to traders.
The benchmark 10-year tax-exempt yield was at 3.18%, down four basis points from Thursday, according to Municipal Market Data. The two-year yield was at 0.65%, down three basis points, while the 30-year yielded 4.80%, down two basis points.
Overall, the four-week moving average of outflows for all muni funds increased to $831.37 million from $765.42 million in the week ended April 6. Meanwhile, the value of assets for all municipal funds grew by a modest $157.04 million to $461.58 billion, following three consecutive weeks of outflows.