U.S. muni bond market edges down to $3.8233 trln in Q1- Fed

By Kitco News / June 08, 2017 / www.kitco.com / Article Link

By Hilary Russ

NEW YORK, June 8 (Reuters) - The U.S. municipal bond market shrank slightly to $3.8233 trillion in the first quarter of 2017 from a revised $3.8374 trillion in the fourth quarter of 2016, according to a quarterly report from the Federal Reserve released on Thursday.

For the first time in five years, foreign buyers shed muni bonds, knocking their total holdings off a record high of $94.7 billion in the previous quarter to $90.4 billion. The last time their total holdings dipped was the second quarter of 2012, according to historical data.

Overseas investors sold off $17.2 billion versus revised purchases of $10.4 billion the prior quarter.

Households, or retail investors, held $1.656 trillion of muni bonds, down slightly from $1.6756 trillion the previous quarter.

Property and casualty insurance companies shed $8.4 billion of munis in the first quarter and life insurance companies added $6.9 billion to their muni holdings. U.S. banks picked up $25.1 billion, half of the amount they added they previous quarter.

U.S. mutual funds added $43.6 billion after having shed $91.7 billion the previous quarter. Exchange traded funds added $2.5 billion.


(Reporting by Hilary Russ; Editing by Chizu Nomiyama)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities,securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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