Weekly reporting municipal bond mutual funds had a net outflow of $1.1 billion during the period ending Oct. 8, AMG Data Services reported.
The results were down from an $848 million outflow the previous week, and represents both the largest outflow from the sector since May 12, 2004, and the third straight outflow after 27 consecutive inflows, according to the Arcata, Calif.-based fund tracker.
The four-week moving average for all muni bond funds - which includes the monthly reporters - rose to a $468.9 million outflow from a $160.4 million outflow.
Taxable bond funds that report weekly had a $7.5 billion net outflow, after a $5.4 billion outflow the week before.
Weekly reporting equity funds had an outflow of $5.2 billion, after a $9.1 billion inflow the previous week.