(Bloomberg) -- Investors added the most money to municipal bond mutual funds since January as state and local government bond yields fell to the lowest level in five months.

Individuals poured $714 million into muni funds in the week ending Friday, Lipper US Fund Flows data show, marking the second inflow in three weeks. Those funds investing in the longest-dated debt fared the best, capturing $685 million of the cash, as the Federal Reserve continued its almost decade-long policy of keeping borrowing costs close to zero.

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