Municipal Funds Fall Most in Two Years on Bond Losses
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Funds that invest in debt securities issued by state and local governments fell the most in two years today as losses in the municipal bond market were exacerbated by a rise in their cost of borrowing.
The Nuveen Municipal Closed-End Index dropped 4.4 percent, the biggest decline since Oct. 15, 2008, after losing 6 percent last week, the largest retreat since February 2009, data compiled by Bloomberg show. Nuveen Ohio Quality Income Municipal Fund tumbled 7.5 percent, its biggest drop since Oct. 10, 2008, and the BlackRock Investment Quality Municipal Trust slid 7.2 percent, the most since Dec. 5, 2008.