UPDATE 1-U.S. municipal bond funds reverse course with inflows

Thu Jan 10, 2013 7:29pm EST

U.S. municipal bond funds reported $1.55 billion of net inflows in the week ended Jan. 9, a reverse from the revised $6.8 million net outflows in the previous week, according to data released by Lipper on Thursday.

Lipper had originally reported the outflows for the week ended Jan. 2 at $13 million.

For most of 2012 investors poured money into the funds, but then pulled $2.3 billion out in the week ended Dec. 19, followed by two more weeks of smaller outflows.

Even with the massive swing this week, the four-week moving average remained negative at $298 million, said Lipper, a unit of Thomson Reuters.

Money washed into high-yield funds, which had net inflows of $278.4 million after the previous week's outflows of $104 million. Exchange-traded funds also saw net inflows, $21.9 million, after outflows of $7.3 million.

BondDesk Group data for the week ended Jan. 9 showed retail investors bought 2.2 bonds for each one they sold, up from 1.9 the previous week. The total number of bonds bought was 68,433, while the number of bonds sold was 31,132.

The data is based on odd-lot customer transactions.

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