Investors are slowing down after dumping muni bond holdings at record speeds in the first half of 2022.
Outflows from municipal bond flows fell to $229 million for the week ended Wednesday from $635 million last week, according to data from Refinitiv Lipper. Mutual and exchange traded funds have had a couple of weeks since the beginning of June when they received more than $1 billion in inflows. Earlier this year, these funds lost more than $30B over 15 consecutive weeks of outflows as rising rates drove down the market value of their portfolios.
Those investors may view the Fed minutes released Thursday as more reason to chill, with expectations of a smaller rate increase rising and predictions of a bigger rate increase falling after the release.
The Wall Street Journal
By Heather Gillers
Aug 19, 2022