Crane Data Subscribers
Crane 100 Money Fund Index Hits 5.00 Percent on Month-End Rate Bump. Our Crane 100 Money Fund Index, an average of 7-day current annualized yields for the 100 largest money market funds, finally ticked up to hit 5.00% yesterday, the first time ever. (Crane Data and the Crane Indexes are preparing to celebrate their first birthday in May.) But the blip up in rates is temporary due to a jump in the overnight Federal funds rate at quarter-end. Demand for "cash" rises at month-end, quarter-end and year-end, as companies pay salaries, bills, and balance their books ("window dressing"). Strong economic and inflation reports Friday added to the squeeze.
