Municipal bond mutual funds saw inflows fall by more than half the previous week's amount, dropping for the second straight week. But they've thus far remained positive through the summer lull.

Muni bond funds reported $436 million of inflows from funds that report their flows weekly for the week ended Aug. 22, according to Lipper FMI. They have seen inflows for 19 consecutive weeks.

There were net inflows of $964 million in the week ended Aug. 15. To view the segment of the market in context, there have now been inflows to muni bond funds for 48 of the past 51 weeks.

Tax-exempt yields have been backing up since late July. But the market by midweek saw yields fall from the belly of the curve on out, following those of Treasuries, though at a distance.

Muni ratios to Treasuries got richer on the week, climbing to percentages of at least 103%. Ratios had gotten cheaper over the past couple of weeks during the selloff.

The muni market also saw a strong reception to the week's issuance. Deals arrived priced cheaply and were snapped up, traders say.

Assets for all muni funds that report their flows weekly climbed to just under $310 billion from $309.5 billion the week before.

The value of the holdings for weekly reporting funds rose by $64.5 million, rising for the first time in three weeks. The week before, they dove by $757 million.

The four-week moving average for all municipal bond mutual funds that report their flows weekly saw a $761 million inflow, falling from a $854 million gain the week before.

Long-term bond funds saw robust inflows. Their share of overall inflows rose to more than half of the total for muni bond funds.

Long-term bond funds that report their flows weekly saw inflows to the tune of $282 million, dropping from $436 million the week before.

High-yield muni funds continue to see relatively strong inflows, though they fell for the second straight week. Flows have been positive for 22 consecutive weeks, and 36 of the previous 37 weeks.

High-yield funds that report weekly saw $186 million in inflows, Lipper said. The previous week, they reported $239 million in inflows.

Assets for high-yield funds that report their flows weekly increased to $43.52 billion, up from $43.33 billion the previous week.

The value of the holdings for weekly reporting funds were largely flat, falling by just $26,000. Last week, they decreased by $80 million.

The four-week moving average for all high-yield muni bond funds that report their flows weekly was $212 million of inflows, down slightly from $230 million the week before.