Munis Head for Longest Slide Since 2016 on Sign of Ebbing Demand
- 3-month drop comes as state, local mutual funds draw less cash
- Analysts point to impasse in D.C. on spending plans, tax hikes
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Municipal bonds are headed for a rare three-month slide, joining a broad slump in the U.S. debt market, amid signs that the insatiable demand that’s buoyed tax-exempt securities this year may be waning.
Muni mutual funds collected $385 million of cash in the week ended Oct. 13, according to Investment Company Institute data. That was the second-smallest haul since March, and it compares with the $1.9 billion weekly average for 2021. What’s more, municipal exchange-traded funds saw an outflow for the first time since February, CreditSights data show.