Crane 100 MF Index Rises to 5.13%
Money fund yields rose over the past week, after breaking the 5.0% level for the first time since August 2007 the previous week. The Crane 100 Money Fund Index (7-Day Yield) rose by 9 basis points to 5.13% in the week ended Friday, 8/4, after increasing by 8 bps the previous week. We expect yields to inch higher in coming days as they finish digesting the Fed's July 26th 25 basis point hike. Yields are up from 4.94% on June 30, 4.61% on March 31 and 4.05% on 12/31/22. Three-quarters of money market fund assets now yield 5.0% or higher and two funds hit the 5.5% level on Friday. (They should get more company in coming days.) Assets of money market funds rose by $46.2 billion last week to $5.911 trillion according to Crane Data's Money Fund Intelligence Daily, and they have risen by $30.4 billion for the month of August (after rising $34.7 billion in July). Weighted average maturities were unchanged last week, and were mostly unchanged in July (at 24 days), after increasing by 3 days during June. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 682), shows a 7-day yield of 5.02%, up 8 bps in the week through Friday. Prime Inst MFs were up 10 bps at 5.23% in the latest week. Government Inst MFs were up 9 bps at 5.08%. Treasury Inst MFs up 6 bps for the week at 5.05%. Treasury Retail MFs currently yield 4.83%, Government Retail MFs yield 4.79%, and Prime Retail MFs yield 5.04%, Tax-exempt MF 7-day yields were up 1 bp to 3.22%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (8/4), 29 money funds (out of 811 total) yield under 3.0% with just $16.2 billion in assets, or 0.3%; 104 funds yield between 3.00% and 3.99% ($107.2 billion, or 1.8%), 251 funds yield between 4.0% and 4.99% ($1.292 trillion, or 21.9%) and 427 funds now yield 5.0% or more ($4.496 trillion, or 76.1%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.61% after rising 2 bps last week. The latest Brokerage Sweep Intelligence, with data as of Aug 4, shows that there were no changes over the past week, but Fidelity raised its rates the previous week to 2.72% for all balances. Three of the 11 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
