Money fund yields (7-day, annualized, simple, net) were down 1 bp at 3.46% on average during the week ended Friday, April 10 (as measured by our Crane 100 Money Fund Index), after remaining unchanged the week prior. Fund yields haven't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged four weeks ago. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 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, 4.14% 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 682), shows a 7-day yield of 3.35%, down 2 bps in the week through Friday. Prime Inst money fund yields were down 2 bps at 3.57% in the latest week. Government Inst MFs were down 3 bps at 3.44%. Treasury Inst MFs were down 1 bp at 3.42%. Treasury Retail MFs currently yield 3.19%, Government Retail MFs yield 3.17% and Prime Retail MFs yield 3.36%, Tax-exempt MF 7-day yields were up 18 bps to 2.22%.
Money market mutual fund assets have paused since hitting a record high of $8.280 trillion on March 18, according to our Money Fund Intelligence Daily. Assets have risen $18.5 billion in the week through Friday, and they've increased by $7.0 billion in April month-to-date (through 4/10). MMF assets decreased by $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion last April. Weighted average maturities were at 43 days for the Crane MFA and 44 days the Crane 100 Money Fund Index.
According to Monday's Money Fund Intelligence Daily, with data as of Friday (4/10), just 171 money funds (out of 792 total) yield under 3.0% with $225.9 billion in assets, or 2.8%, while the vast majority (621) of funds yield between 3.00% and 3.99% ($7.973 trillion, or 97.2%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point sixteen weeks prior. The latest Brokerage Sweep Intelligence, with data as of April 10, shows no changes over the past week. Four 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, Morgan Stanley and Schwab.
In other news, J.P. Morgan posted a "Short-Term Fixed Income" brief titled, "Here comes the sun ... and the tax bill." After discussing Iran, they comment, "Meanwhile, funding markets have remained broadly orderly. Repo conditions through March quarter-end were benign, with overnight GC repo at 3.73%, below the SRP rate. As a result, SOFR increased to 3.68%, a 5bp rise DoD, one of the smallest rises since 2Q24 on a quarter-end date."
The piece continues, "Funding conditions have remained soft so far this month as well, with Thursday's SOFR closing at 3.57%, 8bp below IORB and the narrowest spread since August of last year. This softness has been supported by continued Fed T-bill purchases of $31bn (between March 25 and April 8), alongside $62bn in T-bill paydowns and approximately $55bn in seasonal inflows into MMFs so far this month (total AUM at about $8.1tn)."
It says, "However, looking ahead to the April tax date, funding conditions should firm slightly. Households and corporations will draw down MMF balances and bank deposits to meet tax obligations, draining liquidity in the system (reserves). In recent years, outflows from MMFs and declines in reserve balances have been materially larger, particularly during periods of stronger asset returns."
JPM tells explains, "Specifically, MMF AUM declined by approximately $140bn in 2022, $160bn in 2024, and $175bn in 2025, while reserve balances fell by nearly $470bn in 2022, $285bn in 2024, and $233bn in 2025. Given near-record capital gains distributions in 2025, particularly in the U.S. mutual fund industry, this year's tax-related outflows from MMFs and bank reserves could be in line with those seen over the past few years, though this is likely to be offset by lower expected tax liabilities as a result of the OBBBA bill passed last year.... All told, it would not be surprising if MMF AUMs declined by $125–$175bn over the days surrounding the tax date, while bank reserves decrease by $200–$350bn."
The article adds, "The drain in liquidity related to April 15 should provide a slight, temporary firming in funding conditions next week. In particular, SOFR has historically risen by about 2bp on the tax date. And with mid-month coupon settlements of nearly $50bn occurring concurrently, the upward pressure could be slightly further amplified. Still, with $170bn of T-bill paydowns already seen from the mid-March local peak to today, together with our expectation of $110bn of further paydowns over the remainder of the month and the anticipated continuation of RMPs, broader funding conditions should remain well contained."
