J.P. Morgan writes about our recent Money Fund Symposium in their latest weekly "Short-Term Fixed Income." The brief, titled, "The world cup of Jersey City," explains, "A well-attended money market symposium in Jersey City highlighted the key themes shaping the very front-end. MMFs remain the preferred cash vehicle, with AUM growth likely to continue in the second half, while market structure is evolving as tokenized MMFs and deposits gain traction -- though broader adoption will depend on clearer regulation and stronger governance. Increased second-half T-bill supply is expected to be readily absorbed with limited impact on repo markets. The Treasury repo clearing mandate (one year away) should have minimal effect on SOFR.... Below, we discuss these themes in further detail." (Note: Thanks again to those who attended Crane's Money Fund Symposium last week in Jersey City! Attendees and Crane Data Subscribers may access the MFS Conference Materials here.)
JPM's key themes include: "Cash is king, while liquidity remains supreme. MMFs have solidified their role as the go-to liquidity vehicle, offering investors liquidity, capital preservation, diversification, and competitive short-term yields. Market participants expect MMF AUMs to grow throughout the year, supported by seasonal strength in the second half, elevated uncertainty, and attractive yields that should continue to drive inflows."
They tell us, "Tokenized MMFs and deposits are emerging as standardized products that can deliver liquidity, yield, and stability, but broader adoption depends on stronger governance and investor education. These tokenized offerings should be able to coexist with traditional vehicles, though further uptake will require regulatory clarity and rigorous security, compliance, and risk controls. Although still nascent and small today, tokenization has the potential to expand the investor universe."
Discussing "The repo clearing mandate," they tell us, "Significant progress has been made, but with only one year until the clearing deadline, time is running short. The MMF community appears well positioned for the mandate: a large share of repo holdings is already centrally cleared. As a result, while central clearing will capture more transactions, the remaining volumes that feed into SOFR are small, and any impact on SOFR should be minimal. Overall, clearing should bolster Treasury market safety and liquidity, improve balance-sheet netting, and provide the resilience of a cleared counterparty during periods of stress."
The weekly states, "T-bill supply is expected to increase in the second half of the year, though most market participants view the additional issuance as readily digestible and unlikely to create meaningful pressure in repo markets. More broadly, repo conditions have remained well contained, supported by a combination of factors: the Fed adding liquidity back into the system through RMPs, reinvesting MBS proceeds into T-bills, healthy dealer intermediation, and seasonal T-bill paydowns. Overall, the technical backdrop remains constructive, especially as ongoing RMP operations together with MBS reinvestments are effectively absorbing roughly $25bn of T-bill supply per month."
It also comments, "Intraday repo could become a useful liquidity tool," explaining, "It allows market participants to borrow and lend cash against securities on an intraday basis, narrowing the maturity window down to hours, and even to the minute. This could shrink the need to hold large reserve and excess-margin buffers. Indeed, if this scales, intraday repo could support balance sheet reduction without going to a scarce reserves regime by providing a market-based contingent source of liquidity that redistributes cash only for the time it is needed. It isn't clear if there is demand for intraday funding just yet, but it's plausible -- and demand may emerge as the capability becomes available and use cases solidify."
Finally, JPM adds, "USCP supply continues to rise. Total outstandings are now at $1.46T (the highest since 2009), up about 5% YoY and driven mainly by nonfinancial issuance. ABCP has surged to roughly 31% of total CP -- now larger than the nonfinancial CP market -- with independent sponsors leading the growth as banks optimize their balance sheets. Financial CP issuance is flat to down, while CDs have expanded. Meanwhile, the buyer base has diversified over the years beyond MMFs to include corporates, insurance companies, securities lenders, and state/local governments, as well as SMAs."
In other news, money fund yields (7-day, annualized, simple, net) were unchanged at 3.46% on average during the week ended Friday, June 26 (as measured by our Crane 100 Money Fund Index), after increasing 1 bp the week prior. Fund yields hadn'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 two weeks prior. Yields were 3.44% on 5/31/26, 3.47% on 3/31, 3.58% on 12/31/25, 3.94% on 9/30/25, 4.13% on 6/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 5.20% on 12/31/23.
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 716), shows a 7-day yield of 3.36%, unchanged in the week through Friday. Prime Inst money fund yields were up 1 bp at 3.59% in the latest week. Government Inst MFs were unchanged at 3.45%. Treasury Inst MFs were up 1 bp at 3.43%. Treasury Retail MFs currently yield 3.21%, Government Retail MFs yield 3.17% and Prime Retail MFs yield 3.37%, Tax-exempt MF 7-day yields were down 2 bps to 2.30%.
Money market mutual fund assets hit an all-time record high of $8.370 trillion on June 16. The previous record of $8.346 trillion was seen two weeks prior (6/4), according to our Money Fund Intelligence Daily. Assets have increased $13.9 billion in the week through Friday, and they've increased by $34.0 billion in June month-to-date (through 6/26). MMF assets increased by $208.6 billion in May, decreased by $108.8 billion in April, $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 and $6.7 billion last June.
Weighted average maturities were at 40 days for the Crane MFA and 42 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/26), just 170 money funds (out of 827 total) yield under 3.0% with $230.5 billion in assets, or 2.8%, while the vast majority (657) of funds yield between 3.00% and 3.99% ($8.095 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 0.29%, after falling 1 bp five weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 26, 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.
