Inflows for all municipal bond funds fell off slightly this week from last week, but still remain fairly strong.
Inflows came in at $418.6 million for the week ending July 30, down from $686.2 million the week before, according to Lipper FMI.
Last week's inflows had been the highest reported in the last 12 weeks.
Munis performance has been mixed this week, with a strong performance at the beginning of the week and then a slight sell-off towards the end after the second quarter GDP came in higher than analysts predicted, at 4% growth. First quarter GDP showed a 2.1% contraction. Historically Treasuries and municipal bonds do not perform well when positive economic data is reported.
Treasuries began selling off immediately after the GDP was reported on Wednesday, when the 30-year's yield jumped eight basis points to its highest point so far in 2014 at 3.31%, and the 10-year rose by 10 basis points to 2.56%.
Munis had a delayed reaction to the GDP and began selling-off on Thursday when the two-year rose by one basis point to 0.31%, the 10-year by four basis points to 2.22%, and the 30-year by three basis points to 3.44%, according to Municipal Market Advisors data.
Assets of all weekly reporting municipal funds increased to $294.3 billion down $293.6 billion the week before, Lipper FMI reported. The four-week moving average inflow rose to $118 million from $18.3 million.
Long-term municipal mutual funds that report their flows weekly had an inflow of $148 million following an inflow of $415 million the previous week, Lipper said.
Those assets increased slightly to $158.4 billion after ending at $158 billion the week before. The four-week moving average of the long-term fund was an outflow of negative $172.3 million from negative $235.2 million the week before.
High yield fund inflows were to $227.2 million from $307.72 million the week before.
Assets increased to $443 billion, up from $440 billion. The four-week moving average was negative $53.9 million after negative $109.3 million previously.
