Aashna Shah

The two largest municipal bond exchange-traded funds just recorded their largest weekly inflows ever, shortly after a bond rout fueled outflows in other muni funds.

A rout rippling through the municipal bond market has triggered the busiest day of trading in US state and local government debt in more than 30 years.

Municipal bonds are tumbling, pushing yields on benchmark securities to their highest since at least 2011. The market is on track for its worst monthly performance since 1987, recording a 4.7% loss so far this month.

State and local debt prices headed for the biggest gain in almost six months on Wednesday after a nearly two-week selloff.

Municipal bond asset managers are finding opportunities in the rout that tore through markets this month, with cheaper valuations and the highest yields in years drawing investors.

The return of the Washington Commanders to the nation’s capital has the District of Columbia considering borrowing roughly $526 million in municipal bonds, according to a filing.

State and local debt prices rallied across the curve on Thursday, with 10-year municipal bonds surging the most since last April, in line with a similar move in the US Treasury market.

The Ontario International Airport, a gateway to the popular desert destinations of Southern California’s Inland Empire, is tapping the municipal bond market for roughly $174 million to fund various improvements.

US states and local governments are selling debt at a record clip, borrowing more than $500 billion so far this year as the need for infrastructure and airport upgrades mounts.

State and local governments across the US are asking voters to approve at least $84 billion of bond sales next week, exceeding levels in recent elections in a push to finance infrastructure projects as well as housing affordability measures.