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February 11-18, 2011 Municipal Bond and Mutual Funds News – More Municipal bond outflows

municipal bonds

This week (February 11, 2011 – February 18, 2011) saw lots of news about Wisconsin and for municipal bond mutual fund outflows. The mutual funds we track were mostly unchanged, but a big up week for VWIUX, VCAIX. This weeks municipal bond news included:

  • Wisconsin is taking preemptive action in an effort to help rein in salaries and benefits of unions. Eliminating collective-bargaining rights, making public workers pay half the cost of their pensions, and at least a 12.6% of their healthcare caused major disruptions. Other states will encounter similar turbulence, but this needs to be done. (WSJ)
  • High-yield municipal bond mutual funds are drawing scrutiny.  We would just avoid this area.  (WSJ)
  • Harrisburg, PA continues to struggle to make debt payments. They are trying hard to cut expenses though. (WSJ)
  • Fitch Ratings announced changes to the way it analyzes U.S. state and city pension bills. It will downgrade some state and local governments because of unfunded pension liabilities.  Finally more accuracy! (Marketplace)
  • Schwab has an article on municipal bonds, educating investors have better, more risky. (Schwab)

Vanguard Municipal Bond Mutual Fund Weekly Price Movement (Detailed stats)

Vanguard tax-exempt California Money Market fund (VCTXX) is yielding 0.13% – +0.00% for the week.

Vanguard Short Term Tax-Exempt Fund (VWSTX) 0.0% for the week.
Month to date: -0.06%. December 2010 -0.14%. Current Yield 0.85%.

Vanguard Limited Term Tax-Exempt Fund (VMLTX) +0.18% for the week.
Month to date: -0.18%. December 2010 -0.43%. Current Yield 1.51%.

Vanguard Intermediate Term Tax-Exempt Fund (VWIUX) +0.83% for the week. Month to date: -0.45%. December -1.53%. Current Yield 3.44%.

Vanguard California Intermediate term municipal bond fund (VCAIX) +0.85% for the week. Month to date: -0.37%. December -1.69%. Current Yield 3.66%.

Fidelity Municipal Bond Mutual Fund Weekly Price Movement (Detailed stats)

Fidelity Short-Intermediate Muni Income Bond Fund (FSTFX) +0.18% for the week.
Month to date: -0.28%. December 2010 -0.63%. Current Yield 1.82%.

Fidelity California Intermediate term municipal bond fund (FCSTX) +0.19% for the week.
Month to date: -0.37%. December 2010 -0.64%. Current Yield 1.88%.

See how the Fidelity intermediate term municipal bond fund (FCSTX) and Vanguard California intermediate term municipal bond fund (VCAIX) performed this week on this graph:

See how the municipal bond mutual funds we listed above performed this month on this graph:

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