Crane Data Subscribers
Surprise Huge Fed Cut Pushes Money Fund Asset Totals to $3.3 Trillion. The Investment Company Institute's weekly money fund asset totals show a sharp increase of $64.4 billion to a record $3.252 trillion. Institutional money funds led the surge with an increase of $52.33 billion to a record $2.055 trillion, while Retail money funds also jumped by $12.09 billion to a record $1.196 trillion. The bulk of the increase occurred in general purpose funds; tax-exempt funds saw modest outflows. Over 52 weeks, money fund assets have increased by an unbelievable $861 billion, or 36%. Crane Data expects money market mutual fund assets to record their largest single-week inflow in history in the coming week as institutions "ride the lag", seeking to delay the impact of sharply lower short-term interest rates. Yesterday, funds experienced a single-day record increase of $29.2 billion according to our new Money Fund Intelligence Daily. Yields should continue moving sharply lower. Our Crane 100 Money Fund Index fell 5 basis points yesterday to 4.14% and has fallen 23 basis points over the past week.
