Money Fund Yields Inch Down to 3.75%
Money fund yields (7-day, annualized, simple, net) decreased by 2 bps to 3.75% on average during the week ended Friday, November 21 (as measured by our Crane 100 Money Fund Index), after falling 3 bps the week prior and 10 bps two weeks prior. Fund yields should continue inching lower in coming days as they digest the remainder of the Fed's Oct. 29 25 bps rate cut (and then move lower again if we get a cut on Dec. 10). Yields were 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 679), shows a 7-day yield of 3.66%, down 2 bps in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.86% in the latest week. Government Inst MFs were down 2 bps at 3.76%. Treasury Inst MFs were down 2 bps at 3.71%. Treasury Retail MFs currently yield 3.48%, Government Retail MFs yield 3.47% and Prime Retail MFs yield 3.66%, Tax-exempt MF 7-day yields were up 10 bps to 2.31%. Assets of money market funds rose by $12.1 billion last week to $7.911 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.931 trillion on November 13. Month-to-date in November (through 11/21), MMF assets have increased $61.0 billion, after increasing by $142.1 billion in October, $105.2 billion in September, $132.0 billion in August, $63.7 billion in July, $6.7 billion in June, $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December and $200.5 billion last November. Weighted average maturities were at 38 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (11/21), 133 money funds (out of 790 total) yield under 3.0% with $159.5 billion in assets, or 2.0%; 644 funds yield between 3.00% and 3.99% ($7.617 trillion, or 96.3%), 13 funds yield between 4.0% and 4.99% ($134.1 billion, or 1.7%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.32%, after falling 1 basis point the week prior. The latest Brokerage Sweep Intelligence, with data as of November 21, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
