UPDATE 1-U.S. muni bond fund outflows rise to $1.3 bln - Lipper
Oct 17 (Reuters) - U.S. municipal bond funds reported $1.3 billion of net outflows in the week ended Oct. 16, compared with $729.5 million in outflows the previous week, according to data released by Lipper on Thursday.
It was the 21st week in a row that investors pulled money from the funds and the largest outflow in over a month, since the week ended Sept. 11.
The four-week moving average remained negative at $717.6 million, said Lipper, a unit of Thomson Reuters.
Except for three weeks in May, muni bond funds have shed investors since March, with outflows increasing in the following months to peak at $4.5 billion for the week ending June 26.
Outflows have held steady amid rising interest rates and investor concerns over a few troubled, high-profile issuers, such as Puerto Rico and Detroit, which on July 18 became the largest U.S. city ever to file for bankruptcy.
High-yield municipal funds lost $166 million in the week ending Oct. 16, nearly twice as much as the previous week's outflows. Investors also pulled $50 million from exchange-traded funds for the ninth consecutive week of outflows.
BondDesk Group LLC reported on Thursday that retail investors purchased two municipal bonds for every one they sold during the week ended Oct. 16.
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