Munis were somewhat firmer on Thursday, as U.S. Treasuries richened and equities ended higher.

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Muni yields richened by up to two basis points, depending on the scale. UST yields were three to six basis points richer.

Fund flows have been quieter recently, according to Chris Brigati of SWBC. The desk at SWBC has seen a slowdown in activity, which he attributes largely to seasonals; simultaneously, rates are rising to attractive levels.

The consumer price index and producer price index data released this week showed inflation is still trending higher, Brigati noted, but indicated “positive movement.” UST investors seem to have reached rates they’re comfortable with, he said.

“A decent amount of pullback has already happened. So, rates have gone up — we tested a 4.73% on the 10-year [UST] a few days ago — and the market has kind of come back and retraced,” Brigati said. “The market has seen some pretty high rates and decided, ‘Well, this has moved high enough.'”

Fund flows
Investors added $758.5 million into municipal bond mutual funds in the week ended Wednesday, following $1.31 billion of inflows the prior week, according to LSEG Lipper data.

High-yield funds saw inflows of $338.8 million compared to inflows of $530.3 million the previous week.

New-issue market
In the primary market Thursday, BofA Securities priced for the Clark County Public Utility District No. 1, Washington, (Aa3/A+/AA/) $128.05 million of electric system revenue and refunding bonds, with 5s of 1/2028 at 2.63%, 5s of 2031 at 2,86%, 5s of 2036 at 3.37%, 5s of 2041 at 4.00%, 5s of 2046 at 4.35% and 5s of 2047 at 4.45%, callable 7/2036.

In the competitive market, Jefferson County School District, Kentucky, (Aa2///) sold to BofA Securities $250.76 million of GOs, with 5s of 8/2027 at 2.64%, 5s of 2031 at 2.98%, 5s of 2036 at 3.49%, 5s of 2041 at 3.91% and 4.25s of 2046 at 4.55%, callable 8/2034.