U.S. municipal bond market shrank slightly in Q2-Fed
WASHINGTON, Sept 25
WASHINGTON, Sept 25 (Reuters) - The amount of outstanding U.S. municipal bonds shrank in the second quarter of 2013 to $3.721 trillion from $3.729 trillion in the first quarter according to Federal Reserve data released on Wednesday.
The household sector shed $32.2 billion municipal bonds, after acquiring $2.3 billion in the first quarter. After a year of fleeing bonds, individuals held $1.647 trillion of municipal debt at the end of June, 7 percent less than a year ago. The Fed originally reported that households pulled $16.8 billion of bonds from the market in the first quarter.
Banks continued to buy up municipal bonds, with their holdings again reaching a record high, $390.3 billion. In the second quarter, they acquired $66.2 billion, after taking on $53.9 billion the previous quarter.
Mutual funds shed $21.6 billion in the second quarter, while money market funds acquired $11.1 billion.
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