Money Fund Yields Inch Down to 5.12%
Money fund yields inched one basis point lower to 5.12% on average (as measured by our Crane 100 Money Fund Index, an average of 7-day yields for the 100 largest taxable money funds) in the week ended July 5. Yields were 5.13% on 6/28, 5.14% on 5/31, 5.13% on 4/30, 5.14% on 3/31 and 2/29/24, 5.17% on 1/31/24, 5.20% on 12/31/23, 4.94% on 6/30/23, 4.61% on 3/31/23 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 $6.533 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week at 34 days. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 710), shows a 7-day yield of 5.02%, down 1 bp in the week through Friday. Prime Inst MFs were down 1 bp to 5.17% in the latest week. Government Inst MFs were down 1 bp at 5.11%. Treasury Inst MFs were down 2 bps to 5.05%. Treasury Retail MFs currently yield 4.84%, Government Retail MFs yield 4.82%, and Prime Retail MFs yield 5.02%, Tax-exempt MF 7-day yields were down 63 bps to 3.00%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (7/5), 4 money funds (out of 830 total) yield under 3.0% with $28 million in assets, or 0.0%; 114 funds yield between 3.00% and 3.99% ($125.6 billion, or 1.9%), 261 funds yield between 4.0% and 4.99% ($1.347 trillion, or 20.8%) and 451 funds now yield 5.0% or more ($5.016 trillion, or 77.3%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.62%. The latest Brokerage Sweep Intelligence, with data as of June 28, shows that there was no changes over the past week. six weeks prior we saw the removal of TD Ameritrade from the listings pushed the averages higher (2 bps). Three of the 10 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. (Note: seven weeks ago we removed rates for TD Ameritrade from BSI since it completed its merger with Charles Schwab.)
