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The bar graph below shows the monthly flow of funds from municipal bond mutual funds for the year April 1, 2010 to March 31, 2011. As indicated, starting the month of November 2010, fund cash flows reversed and became negative. A number of events lead to the huge drawdown on the funds. These include rating downgrades on billions of dollars of tobacco bonds, general market angst about lower governmental revenues and high pension levels, and the seemingly unceasing negative media coverage about governmental finances. Regardless of the cause, investors took billions out of bond funds, turning usual buyers into forced sellers and driving municipal interest rates up. From November 1 to December 15 the 30 year Municipal Market Data average rate increased almost one whole percentage point (3.86% to 4.85%). Since late January, cash outflows have diminished and interest rates, though subject to fluctuation, have become less volatile.  
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