Money Fund Yields Inch Lower to 5.18%
Money fund yields dipped by two basis points to 5.18% on average (as measured by our Crane 100 Money Fund Index) in the week ended Jan. 5, after rising 1 bp the week prior. Our Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. Yields were 5.20% on 12/31/23 and on 11/30, 5.19% on 10/31, 5.17% on 9/30, 5.16% on 8/31, 5.09% on July 31, 4.94% on June 30, 4.61% on March 31 and 4.05% on 12/31/22. The vast majority of money market fund assets now yield 5.0% or higher. Assets of money market funds rose by $44.5 billion last week to $6.346 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 690), shows a 7-day yield of 5.08%, down 2 bps in the week through Friday. Prime Inst MFs were down 1 bp at 5.30% in the latest week. Government Inst MFs were down 2 bps at 5.15%. Treasury Inst MFs were down 2 bps at 5.10%. Treasury Retail MFs currently yield 4.89%, Government Retail MFs yield 4.86%, and Prime Retail MFs yield 5.12%, Tax-exempt MF 7-day yields were down 71 bps to 2.98%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/5), 62 money funds (out of 818 total) yield under 3.0% with $39.6 billion in assets, or 0.6%; 69 funds yield between 3.00% and 3.99% ($94.2 billion, or 1.5%), 208 funds yield between 4.0% and 4.99% ($736.1 billion, or 11.6%) and 479 funds now yield 5.0% or more ($5.476 trillion, or 86.3%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.61%. The latest Brokerage Sweep Intelligence, with data as of Jan. 5, shows that there were no changes over the past week. Three of the 11 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
