After strong flows into stock funds earlier this year, investor interest in equities is waning as bond funds remain in high demand, says Morningstar's Mike Rawson.
With tax season having passed, muni industry watchers anticipate the outflows to fade soon and interest beyond the front end of the yield curve to rise.
Inflows Into Treasury-Bond ETFs Surged to Record Last Week
Vermilion Energy Inc. Announces Results for the Three Months Ended March 31, 2013
Investors injected roughly $10.8 billion into mutual funds and exchange-traded funds (ETFs) for the week.
For the week ended March 6, investors steered an estimated $11.85 billion into mutual funds, up 41% from the previous week.
Equity funds’ strong performance leads to dramatic ETF flows in March.
Investors were down on the municipal bond market for a third straight week as $261 million poured out of weekly reporting muni bond mutual funds for the week of March 20.
Municipal bond mutual funds saw outflows for a second straight week, at $133 million, as the market absorbed a large calendar with concessions.