WASHINGTON Jan 16 U.S. municipal bond funds
posted inflows of $103.3 million, their first net inflows in
eight months, in the week ended Jan. 15, according to Lipper
data released on Thursday that showed investors poured money
into high-yield funds.
Last week's outflows of $19 million capped 33 straight weeks
of net outflows - the longest string of redemptions on record as
kept by Lipper, a Thomson Reuters company.
This week's sea change happened mostly high-yield funds,
typically consisting of riskier debt, which had net inflows of
$276.4 million. They also had inflows, $50 million the previous
Altogether, the four-week moving average for municipal bond
funds remained negative at $719.8 million this week.
A relentless selloff sucked a record $62.6 billion out of
municipal bond funds in 2013, as investors were spooked by
interest rate risk but also lured by higher returns in the stock
market. Now armed with cash from year-end redemptions, investors
have recently returned to take advantage of the sector's rich
Exchange-traded funds, too, saw inflows, $45.9 million, this
week after last week's inflows of $45.6 million.