Municipal bond mutual funds recorded a second consecutive week of strong inflows.
Funds that report their flows weekly saw $1.44 billion in inflows for the week of Jan. 16, Lipper FMI numbers showed. That compared with inflows of $1.55 billion the week ended Jan. 9.
The month of January has taken on the tenor of much of 2012, as robust inflows dominated the market for muni bond funds. This past week, muni yields fell across the curve from last Friday, mostly keeping pace with those of Treasuries.
New issuance picked up and was well received. The market is bracing for issuance to pick up even more next week, when three $1 billion deals are expected to reach the market. Traders have said that the market is positioned to absorb such an uptick.
Flows to muni bond funds that report their flows weekly were negative to close 2012 and launch the new year, with outflows of $2.3 billion at their highest for the week of Dec. 19.
Assets for all muni funds that report their flows weekly increased for a third consecutive week to $324.8 billion, from $320.9 billion the week before.
The value of the holdings for weekly reporting funds was positive for a fourth straight week, rising by $1.28 billion. The week before, it increased by $1.14 billion.
The four-week moving average for all municipal bond mutual funds that report their flows weekly was $641 million of inflows, up from a $298 million loss the week before.
Long-term bond funds that report their flows weekly reported heavy inflows for a second consecutive week, at $917 million, a small increase from the $780 million of inflows they reported the week before.
High-yield muni funds also saw positive flows for a second straight week. They were positive for an overwhelming majority of 2012.
High-yield funds that report weekly saw $434 million in inflows, Lipper said. The previous week, they reported $278 million in inflows.
Assets for high-yield funds that report their flows weekly rose for a third straight week to $44.73 billion, up from $43.74 billion the week before.
The value of the holdings for weekly reporting high-yield funds rose by $285 million. Last week, they rose by $184 million.
The four-week moving average for all high-yield municipal bond funds that report their flows weekly was $87 million of inflows, rising from $256 million of outflows the week before.