UPDATE 1-U.S. municipal bond funds report $109 mln weekly inflows

Thu Feb 7, 2013 4:58pm EST

U.S. municipal bond funds posted $109 million of net inflows in the week ended Feb. 6, compared with $573.6 million of inflows in the previous week, according to data released by Lipper on Thursday.

The four-week moving average remained positive at $749.2 million, said Lipper, a unit of Thomson Reuters.

Investors poured money into the funds through most of 2012 until the final two weeks of the year, when there were outflows totaling more than $2.7 billion. But lately investors have returned, with five straight weeks of inflows.

Inflows into exchange-traded funds in the latest week were $9.5 million, nearly half the $19.3 million the week before. Meanwhile, investors moved $21.5 million into high-yield funds, a steep drop from the $82.8 million of inflows the previous week.

Retail investors bought 1.7 bonds for every one they sold in the week ended Feb. 6, up from a ratio of 1.6 the prior week, according to BondDesk Group. The total number of bonds bought was 60,846, while the number of bonds sold was 35,536.

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