UPDATE 1-US muni bond fund inflows shrink to $63.46 mln -Lipper

Thu May 23, 2013 5:19pm EDT

May 23 (Reuters) - U.S. municipal bond funds posted net inflows of $63.46 million in the week ended May 22, down from the $306.31 million recorded in the previous week, according to data released by Lipper on Thursday.

The latest week marked the third in a row with positive flows into the funds, which are popular with individual investors. Prior to the week of May 8, the funds reported nine-straight weeks of outflows - the longest streak of negative flows since 2011.

The four-week moving average turned positive at $127,000, breaking a nine-week string of negative results for the measure said Lipper, a unit of Thomson Reuters.

In the latest week, high-yield funds posted net outflows of $123.15 million, a turnaround from net inflows last week of $53.56 million.

Exchange-traded funds had inflows of $10.1 million compared with outflows of $2,000 in the week ended May 15.

Meanwhile, retail investors bought 1.6 muni bonds for every one they sold in the week ended May 22, the same pace as the previous week, according to BondDesk Group.

The number of bonds bought totaled 58,318, while the number of bonds sold was 35,905.

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