Page 37 - Fomc News Today

High-yield saw outflows of $867.067 million after $594.497 million of outflows the week prior while exchange-traded funds saw inflows of $736.967 million after $444.544 million of inflows the previous week.

Investors pulled $3.843 billion from mutual funds in the week ending Oct. 26 after $3.876 billion of outflows the previous week, according to ICI.

The Federal Reserve raised the benchmark federal funds rate by 75 basis points, to a target range of 3.75–4.00 percent on Nov. 2.

October returns were in the red with the Bloomberg Municipal Index showing a loss of 0.83% for the month, bringing total losses in 2022 to 12.86%. Only May and July saw positive returns for the asset class.

Total October volume was $24.951 billion in 510 deals versus $41.811 billion in 1,068 issues a year earlier, according to Refinitiv data.

With the Federal Reserve's hike pretty much expected, analysts will search for clues about future moves.

"It should at least be something we're considering at this point, but the data haven't been cooperating," Daly said Friday.

"Despite a pick-up in volatility in the rates market, municipals have been performing relatively well in October," according to Barclays PLC.

Refinitiv Lipper reported $2.262 billion of outflows from municipal bond mutual funds for the week ending Wednesday after $2.057 billion the week prior.

The Federal Reserve will eventually slow down the pace of interest rate hikes as officials assess the cumulative effects of monetary policy adjustments.