After remaining relatively flat for the first six weeks of the year, Muni yields took a sharp turn higher in mid-February, finally beginning to catch up to the rise in U.S. Treasury yields. Improving economic growth numbers combined with the proposed $1.9 trillion Federal Stimulus Bill have resulted in continued expectations of increasing inflation leading to higher yields. Inflows into Muni Mutual Funds continued for the month but at a much slower pace and we expect lower inflows or even an outflow cycle over the coming weeks, resulting in reduced demand. Our defensive approach has held up through this selloff…