May 9 U.S. municipal bond funds attracted the
most money in nearly 16 months, with $943.2 million of inflows
spread evenly and broadly among sub-sectors in the $3.7 trillion
Investors have returned to muni bond funds this year, after
fleeing last year in record numbers on concerns about financial
crises in Puerto Rico and Detroit.
But the large inflows for the week ending May 7 haven't been
seen since January 16, 2013, when the funds had $1.4 billion of
inflows, according to data from Lipper, a Thomson Reuters unit.
Overall, total assets in muni bond funds are up about $19
billion, to $288.2 billion, since the beginning of the year.
"It was a huge turnaround," said Chris Mauro, director of
municipal bond strategy at RBC Capital Markets.
"We usually look for certain sectors that dominate, or
individual funds. That just wasn't the case here. There are no
outliers," he said. "It's just a real, good, solid, clean
The strong results can be at least partly attributed to May
1 coupon payments. But the month of May last year had a similar
level of coupon re-investment, without the same huge jump in
inflows, he said.
(Reporting by Hilary Russ; Editing by Chizu Nomiyama)