Muni Bond Funds Draw $22 Billion in Fastest Pace Since 2021

A worker welds a beam at a tunnel construction site in North Bergen, New Jersey.

Photographer: Michael Nagle/Bloomberg

Investors are piling into municipal bonds at the fastest rate in five years, drawn by attractive yields and the promise of a safe harbor from recent market volatility.

Net inflows into funds focused on state and local government debt totaled roughly $22.3 billion in the first four months of the year, the most for the period since 2021, according to data from LSEG Lipper Global Fund Flows.