Money Fund Yields Inch Up to 4.14%
Money fund yields inched higher again last week, with our Crane 100 Money Fund Index (7-Day Yield) rising two basis points to 4.14% for the week ended Friday, 1/27. Yields rose by 2 basis points the previous week, and they're up from 4.05% on 12/31/22. They're up from 3.59% on Nov. 30, 2.88% on Oct. 31 and 2.66% on Sept. 30. Yields should move higher again following an expected Feb. 1 Fed hike on Wednesday. The top-yielding money market funds have broken above 4.50% and should move towards 4.75% and 5.0% in coming weeks. (See our "Highest-Yielding Money Funds" table above). The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 675), shows a 7-day yield of 4.03%, up 2 bps in the week through Friday. Prime Inst MFs were up 1 bp at 4.27% in the latest week. Government Inst MFs rose by 2 bps to 4.07%. Treasury Inst MFs up 4 bps for the week at 4.06%. Treasury Retail MFs currently yield 3.80%, Government Retail MFs yield 3.77%, and Prime Retail MFs yield 4.08%, Tax-exempt MF 7-day yields were down at 1.82%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/27), 38 funds (808 total) have fallen below the 2.0% yield mark this past week, and many continue to rise over 4.0%; 130 funds yield between 0.00% and 1.99% with $114.9 billion, or 2.2%; 8 funds yield between 2.00% and 2.99% with $11.5 billion, or 0.2%; 256 funds yield between 3.00% and 3.99% ($1.147 trillion, or 22.1%), and 414 funds yield 4.0% or more ($3.921 trillion, or 75.5%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged last week at 0.52%. The latest Brokerage Sweep Intelligence, with data as of Jan. 27, shows that there were no changes over the past week. Just 3 of 11 major brokerages still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
