Strength in Muni Bonds

Through all the turmoil surrounding the investing landscape these days, one asset that has remained very strong in popularity is municipal bonds. We've talked in the past about the net outflows that equity funds have seen this year; municipal bond funds are the exact opposite. Muni funds took in $653 million last week, marking the 13th straight week in which they had net inflows.

As a result of all of this demand, earlier this week, the yields on 30-year municipal bonds fell to record lows, as investors continued to look for safe havens. The 30-year yield is now just 2.92 percent. Remember, as the demand - and the price - of bonds goes up, their yields go down.

Much of that movement has taken place recently. The yield on 30-year muni bonds has dropped by 24 basis points in the past month alone. The yield on 10-year bonds has dropped 12 basis points in the past month.