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Investors Seeking to Dump Bonds at Record Rate: Muni Credit

Municipal bond investors are trying to unload holdings at the fastest pace in at least 14 years amid increasing mutual fund redemptions and rising U.S. Treasury rates.

Bondholders looked for buyers for about $896 million in municipal securities daily this month through Dec. 22, the most on record, according to a Bloomberg bids-wanted index that dates to Aug. 8, 1996. Sellers sought bids for $783 million on average in March 2008, the second-highest monthly tally, the index shows.