Daily Links Archives: March, 2026
Money Fund Yields Flat at 3.47%
Money fund yields (7-day, annualized, simple, net) were unchanged at 3.47% on average during the week ended Friday, March 27 (as measured by our Crane 100 Money Fund Index), after remaining unchanged the week prior. Fund yields haven'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 ago. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 682), shows a 7-day yield of 3.37%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.59% in the latest week. Government Inst MFs were unchanged at 3.46%. Treasury Inst MFs were unchanged at 3.43%. Treasury Retail MFs currently yield 3.20%, Government Retail MFs yield 3.18% and Prime Retail MFs yield 3.37%, Tax-exempt MF 7-day yields were down 1 bp to 2.09%. Money market mutual fund assets have paused since hitting a record high of $8.280 trillion on March 18, according to our Money Fund Intelligence Daily. Assets have fallen $54.7 billion in the week through Friday, and they've decreased by $32.9 billion in March month-to-date (through 3/27). MMF assets 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, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April and increased by $2.8 billion last March. Weighted average maturities were at 43 days for the Crane MFA and 44 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (3/27), just 162 money funds (out of 792 total) yield under 3.0% with $202.6 billion in assets, or 2.5%, while the vast majority (630) of funds yield between 3.00% and 3.99% ($8.006 trillion, or 97.5%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point fourteen weeks prior. The latest Brokerage Sweep Intelligence, with data as of March 27, 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.
MMFs in Retirement Plans Break $1 Tril.
The Investment Company Institute published, "Retirement Assets Total $49.1 Trillion in Fourth Quarter 2025," which includes data tables showing that money market funds held in retirement accounts jumped to $1.016 trillion (up from $988 billion) in the latest quarter, accounting for 13% of the total $7.746 trillion in money funds. MMFs represent just 6.9% of the total $14.7 trillion of mutual funds in retirement accounts. The release says, "Total US retirement assets were $49.1 trillion as of December 31, 2025, up 2.1 percent from September. Retirement assets accounted for 34 percent of all household financial assets in the United States at the end of December 2025. Assets in individual retirement accounts (IRAs) totaled $19.2 trillion at the end of the fourth quarter of 2025, an increase of 1.7 percent from the end of the third quarter of 2025." It continues, "Defined contribution (DC) plan assets were $14.2 trillion at the end of the fourth quarter, up 1.7 percent from September 30, 2025. Government defined benefit (DB) plans—including federal, state, and local government plans -- held $10.0 trillion in assets as of the end of December 2025, a 4.5 percent increase from the end of September 2025. Private-sector DB plans held $3.1 trillion in assets at the end of the fourth quarter of 2025, and annuity reserves outside of retirement accounts accounted for another $2.6 trillion." The ICI tables show money funds accounting for $772 billion, or 10%, of the $7.402 trillion in IRA mutual fund assets and $244 billion, or 3%, of the $7.336 trillion in defined contribution plan holdings. Money funds in 401k plans totaled $163 billion, or 3% of the $5.816 trillion of mutual funds in 401k's.
ICI: Assets Plunge in Latest Week
The Investment Company Institute published its weekly "Money Market Fund Assets" report Thursday, which shows money fund assets decreasing by $53.0 billion to $7.803 trillion, after rising by $38.7 billion to a record high $7.856 trillion the previous week. Assets have risen in 21 of the last 27 weeks and 29 of the past 36 weeks. MMF assets are up by $789 billion, or 11.3%, over the past 52 weeks (through 3/25/26), with Institutional MMFs up $546 billion, or 13.2% and Retail MMFs up $243 billion, or 8.5%. Year-to-date in 2026, MMF assets are up by $70 billion, or 0.9%, with Institutional MMFs up $38 billion, or 0.8% and Retail MMFs up $32 billion, or 1.0%. ICI's weekly release says, "Total money market fund assets decreased by $53.01 billion to $7.80 trillion for the week ended Wednesday, March 25, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $58.25 billion and prime funds increased by $4.27 billion. Tax-exempt money market funds increased by $968 million." ICI's stats show Institutional MMFs decreasing $59.4 billion and Retail MMFs increasing $6.4 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.411 trillion (82.2% of all money funds), while Total Prime MMFs were $1.248 trillion (16.0%). Tax Exempt MMFs totaled $144.1 billion (1.8%). It explains, "Assets of retail money market funds increased by $6.41 billion to $3.11 trillion. Among retail funds, government money market fund assets increased by $5.38 billion to $1.97 trillion, prime money market fund assets decreased by $192 million to $1.01 trillion, and tax-exempt fund assets increased by $1.22 billion to $130.97 billion." Retail assets account for 39.9% of the total, and Government Retail assets make up 63.4% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $59.42 billion to $4.69 trillion. Among institutional funds, government money market fund assets decreased by $63.63 billion to $4.44 trillion, prime money market fund assets increased by $4.46 billion to $241.67 billion, and tax-exempt fund assets decreased by $253 million to $13.14 billion." Institutional assets accounted for 60.1% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have decreased by $300 million to $8.241 trillion month-to-date in March (as of 3/25), assets hit a record high on March 18 of $8.280 trillion. (Our asset series previous record high, $8.276 trillion, was set on 3/17/26.) Assets 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 $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. MMFs fell by $24.4 billion in April, but rose $2.8 trillion last March. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
Reuters: Fidelity Lawsuit Dismissed
Reuters published the news brief, "Fidelity beats lawsuit over fees in US$439 billion money market fund." The piece explains, "A U.S. federal judge dismissed a lawsuit on Wednesday accusing mutual fund giant Fidelity of cheating many investors in its US$439.1 billion Fidelity Government Money Market Fund by keeping them in higher-cost share classes than they were eligible for. U.S. District Judge Margaret Garnett in Manhattan rejected claims that Fidelity unjustly enriched itself, and the fund's board and investment managers breached their fiduciary duties, by failing to automatically convert 'retail class' shares into lower-cost 'premium class' shares once balances hit $100,000 in non-retirement accounts or $10,000 in retirement accounts." Reuters comments, "Retail investors said Boston-based Fidelity shortchanged them out of millions of dollars by continuing to charge fees and expenses of up to 0.42 percent on their investments, rather than up to 0.32 percent on the premium class shares. Garnett, however, said Fidelity fully disclosed the economic consequences of converting or not converting shares. She also said investors neither showed that Fidelity's disclosures regarding conversions were misleading nor disputed they could readily convert their shares on their own."
St. Louis Fed Corporate Cash Study
The Federal Reserve Bank of St. Louis wrote earlier this month on "Financing R&D Spending: The Role of Corporate Cash Holdings." The summary says, "Research and development (R&D) investment and productivity growth have long been recognized as central drivers of economic growth. Yet innovation is inherently difficult to finance externally: It is intangible, risky and subject to severe asymmetric information. As a result, firms with higher R&D intensity -- R&D expenditures divided by total assets -- tend to hold a larger share of their assets in cash." It tells us, "In recent years, with the need to invest in artificial intelligence (AI), it has become more important to understand the role of cash. For example, 'hyperscalers' have announced their investment plans on their AI-related projects at unprecedented levels. In this blog post, we will explore how cash holdings and R&D intensity of U.S. firms have changed over time. We will also discuss possible implications of these trends for the future given the increase in AI-related investment." The study explains, "For our analysis, we studied firms that are U.S. incorporated and publicly traded between 1979 and 2024 using S&P Compustat data. We focused on nonfinancial and nonutility firms because financial firms are likely to hold cash for different reasons, such as liquidity requirements, and utility firms are likely to be regulated. Variables were inflation-adjusted to 2017 U.S. dollars and were converted into U.S. dollars if reported in other currencies." It adds, "The first figure displays the distribution of the cash ratio among firms from 1979 to 2024, showing the time series of the 25th, 50th, 75th and 90th percentiles as well as the mean, all weighted by firm assets. The cash ratio is defined as cash and short-term investments divided by total assets. Weighting by firm assets gives greater weight to larger firms, so the statistics reflect where most corporate assets were held rather than treating all firms as equal in size. In simple terms, the figure shows how much cash firms held relative to their asset size, and how this differed across the distribution -- from firms holding relatively little cash (25th percentile) to those holding substantially more (90th percentile), as well as the typical firm (the 50th percentile, or median) and the average firm (mean). The figure illustrates a pronounced upward trend in cash holdings, particularly between 1990 and 2010. Over that period, the mean and median increased by 9.1 percentage points and 8.2 percentage points, respectively. More recently, however, the pattern has partially reversed. From 2020 to 2024, the mean and median declined by 3.4 percentage points and 1.3 percentage points, respectively. The decline is even sharper at the top of the distribution, with the 90th percentile falling by 14.9 percentage points."
Money Fund Yields Flat at 3.47%
Money fund yields (7-day, annualized, simple, net) were unchanged at 3.47% on average during the week ended Friday, March 20 (as measured by our Crane 100 Money Fund Index), after decreasing 1 basis point the week prior. Fund yields haven'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 eight weeks ago. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 682), shows a 7-day yield of 3.37%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.59% in the latest week. Government Inst MFs were down 1 bp at 3.46%. Treasury Inst MFs were unchanged at 3.43%. Treasury Retail MFs currently yield 3.20%, Government Retail MFs yield 3.18% and Prime Retail MFs yield 3.37%, Tax-exempt MF 7-day yields were up 27 bps to 2.10%. Money market mutual fund assets have paused since hitting a record high of $8.280 trillion on March 18, according to our Money Fund Intelligence Daily. Assets have risen $40.8 billion in the week through Friday, and they've increased by $21.8 billion in March month-to-date (through 3/20). MMF assets 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, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April and increased by $2.8 billion last March. Weighted average maturities were at 43 days for the Crane MFA and 44 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (3/20), just 162 money funds (out of 792 total) yield under 3.0% with $191.9 billion in assets, or 2.3%, while the vast majority (630) of funds yield between 3.00% and 3.99% ($8.071 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point thirteen weeks prior. The latest Brokerage Sweep Intelligence, with data as of March 20, 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.
Reuters: War and Record MMF Assets
Reuters writes, "Investors drive US money market fund assets to records as war-related risk fears multiply." The piece says, "As the Iran conflict intensifies, the spike in oil prices and rising inflation fears are spurring investors to ditch stocks as too risky and shun traditional safe havens such as gold in favor of money market funds. The result: assets in those ultra-short-term and ultra-safe Treasury funds are now hovering around $8 trillion, according to calculations from providers such as the Investment Company Institute, JPMorgan Chase and Crane Data, which specializes in tracking money market flows. While their methodology varies and precise calculations range from $7.8 trillion to $8.1 trillion, the sources agree that assets have hit a record amid the conflict." Reuters quotes Malcolm Polley of Stratos Investment Management, "When you have times of dislocation and times of fear, cash is the only thing that makes sense to a lot of people, because there's the belief that you 'can't lose' by holding it.... [T]he world is not coming to an end just yet." The article adds, "To some, that offers a great case for putting money to one side in a product that currently offers yields north of 3% and, in a handful of cases, approaching 4%, depending on the financial institution. In the first few days of the Iran war, Deborah Cunningham, chief investment officer of global liquidity markets at Federated Hermes, said in an analysis published earlier this month that the 'collective negative vibe often sends investors to safer harbors'.... Cunningham told Reuters she pegs the size of that cash mountain in money markets at $8.3 trillion."
ICI: Assets Jump to Record $7.86 Tril.
The Investment Company Institute published its weekly "Money Market Fund Assets" report Thursday, which shows money fund assets increasing by $38.7 billion to a record high $7.856 trillion, after rising by $0.8 billion the previous week. Assets have risen in 21 of the last 26 weeks and 29 of the past 35 weeks. MMF assets are up by $854 billion, or 12.2%, over the past 52 weeks (through 3/18/26), with Institutional MMFs up $618 billion, or 14.8% and Retail MMFs up $236 billion, or 8.3%. Year-to-date in 2026, MMF assets are up by $123 billion, or 1.6%, with Institutional MMFs up $97 billion, or 2.1% and Retail MMFs up $26 billion, or 0.8%. ICI's weekly release says, "Total money market fund assets increased by $38.68 billion to $7.86 trillion for the week ended Wednesday, March 18, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $40.55 billion and prime funds decreased by $3.40 billion. Tax-exempt money market funds increased by $1.52 billion." ICI's stats show Institutional MMFs increasing $27.8 billion and Retail MMFs increasing $10.9 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.469 trillion (82.3% of all money funds), while Total Prime MMFs were $1.244 trillion (15.8%). Tax Exempt MMFs totaled $143.1 billion (1.8%). It explains, "Assets of retail money market funds increased by $10.91 billion to $3.10 trillion. Among retail funds, government money market fund assets increased by $7.82 billion to $1.97 trillion, prime money market fund assets increased by $1.90 billion to $1.01 trillion, and tax-exempt fund assets increased by $1.19 billion to $129.75 billion." Retail assets account for 39.5% of the total, and Government Retail assets make up 63.4% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $27.77 billion to $4.75 trillion. Among institutional funds, government money market fund assets increased by $32.74 billion to $4.50 trillion, prime money market fund assets decreased by $5.29 billion to $237.21 billion, and tax-exempt fund assets increased by $326 million to $13.39 billion." Institutional assets accounted for 60.5% of all MMF assets, with Government Institutional assets making up 94.7% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $38.4 billion to $8.280 trillion month-to-date in March (as of 3/18), assets hit a record high on March 18 of $8.280 trillion. (Our asset series previous record high, $8.276 trillion, was set on 3/17/26.) Assets 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 $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. MMFs fell by $24.4 billion in April, but rose $2.8 trillion in March and $94.2 billion last February. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
Deutsche Centralised Cash Solutions
Securities Finance Times posted an article titled, "Centralised cash solutions: Providing opportunities for optimising cash holdings." The piece says, "Deutsche Bank's Kaitlyn Choo and Cassie von Sprecher provide their insights on how Deutsche Bank is providing solutions to support client's optimal allocation of cash to money market funds and reverse repo, across multiple currencies. As clients continue to face ever changing global interest rate environments, cash as a permanent asset class is here to stay. While both funding and cash placement optimisation solutions continue to converge for many institutional investors, Deutsche Bank has found that providing flexibility for our clients has enabled them to take advantage of these changing rates, in line with their risk and return preferences." The article continues, "The Cash Investment Services (CIS) allows for optimal allocation of cash to either money market funds (MMFs), and/or reverse repo across multiple currencies, through a single access point. This centralised solution provides market access to allow clients to prioritise their cash investment goals, be it safety through collateralisation, yield enhancement, ease of operations, or daily access to liquidity." The post adds, "A diverging rate environment requires clients to have access to capabilities that take advantage of changing rates. Deutsche Bank's Cash Investment Service provides a comprehensive toolkit for managing cash tailored to investor needs, prioritising risk or return based on preferences depending on interest rate volatility."
OMFIF on Tokenised Money Funds
U.K. think tank and lobbying organization OMFIF posted a piece titled, "Which is the fairest of all tokenised monies?" They write, "As markets explore tokenised deposits and stablecoins, tokenised money market fund shares deserve equal attention, given their high credit quality, interest-bearing nature and institutional familiarity. Not only does tokenisation bring considerable benefits to money market fund shares, it changes how institutional liquidity is managed, shifting it from redemption towards circulation. It transforms money market funds from a passive savings vehicle to a multi-purpose financial instrument." The post explains, "Money market funds have grown by more than half during the past five years to about $10tn in assets under management in the US and the European Union. In many jurisdictions, regulatory regimes have been tightened and funds are subject to greater transparency on permissible investments. Several tokenised money market funds have been launched, including Franklin Templeton's Benji and BlackRock's BUIDL." The OMFIF says, "Money market funds are normally used by institutional investors such as pension funds, insurance companies and banks to park excess liquidity.... With tokenisation, fund shares are issued in a token format on blockchain and other distributed ledger technology platforms. The blockchain records and processes ownership of the shares. It allows the merging of fund law with securities tokenisation, converting the technical and legal character of the shares, facilitating their use in settlement and securing intraday liquidity operations without operational recourse to the transfer agent." The article adds, "The interest in tokenised money market fund shares is largely twofold. First, share transfers can occur instantly among subscribers on a delivery-without-payment and delivery-versus-delivery basis to discharge obligations. Atomic settlement enables the exchange of shares of funds denominated in different currencies for foreign exchange transactions – which may help address deficiencies in FX settlement and other cross-border transactions through transfers among domestic and non-resident fund subscribers. Second, the use of the tokenised shares as collateral rests on transferring control of the share to the lender without a title transfer, allowing the borrower to maintain economic exposure to the fund. The absence of a title transfer results in a secured lending operation instead of a conventional repurchase operation."
Morningstar: How to Use Money Funds
Morningstar posted an article titled, "How to Use Money Market Funds in Your Portfolio." Subtitled, "A look at the pros and cons of one of the safest places to stash your cash," it states, "In a previous article, I wrote about the role of cash -- an umbrella term used to describe not just hard currency but other safe, liquid assets such as Treasury bills, certificates of deposit, and bank accounts. Here, I'll talk more specifically about money market funds, which are mutual funds that invest in short-term debt instruments with high credit quality, including US Treasury bills and short-term unsecured corporate-backed notes (aka commercial paper). Money market funds aim to sustain a net asset value of $1.00 per share while offering higher yields than bank savings accounts." Discussing the risks and advantages of money funds, they explain, "Money market funds are popular with both individual savers and corporations, who often use them as a tool for managing the cash on their balance sheets. Based on data from Morningstar Direct, assets in US-based money market funds totaled more than $7 trillion as of Jan. 31, 2026 -- larger than any other category group except for US equity funds." The piece adds, "Money market funds are popular partly because of their convenience. They're available through any major brokerage platform and often offer features such as check writing, making them easy to use for larger expenses such as tax payments and major purchases. Shareholders in money market funds can easily transfer assets to or from a bank account or a longer-term investment vehicle."
State Street's Milrod at RBC Conference
State Street's Chief Product Officer Donna Milrod spoke recently at the 2026 RBC Capital Markets Global Financial Institutions Conference. She comments, "Tokenization is a key focus, offering benefits like fractional ownership and near-instant settlement, with initial products including tokenized money market funds. Why money market tokenization first? Well, I'd say there's three real benefits, and they have real commercial value to our client base. The first is what's going on in stablecoins. Money market funds are a natural cash equivalent for stablecoins. Right now, they cannot earn interest. Also, stablecoins are really used ... for crypto transactions, so there's a lot of rhetoric in the market about stablecoins being used for payment rails. That isn't really true yet, but that will come. Really, if you think about the opportunity for stablecoins investing in money funds, they will then earn interest. That's clearly one use case that has real commercial value.... The second use case is really about distribution. This allows money market fund sponsors to reach digitally native investors. There's an opportunity there. Think of that as another wrapper, just like an ETF or a mutual fund. We know wrappers. Like, we're the number one servicer in ETFs. We know a thing or two about this. We bring our expertise to the market there. The third use case is really about using these tokens as collateral." She also says, "If you think back to 2022, with the U.K. gilt crisis, that turned into an LDI crisis. That was really because as counterparties needed to post more collateral, they had to liquidate their money funds to get to the underlying assets, and that just took time, and therefore they, you know, that just made the crisis that much worse. If they were able to post tokens of their money funds, which were just a representation of the same value, we would not have had such a deep crisis." Milrod adds, "If you think about the opportunity, you know, you have a $10 trillion money market mutual fund market, [and] in terms of what's been tokenized so far, it's less than $1 billion or right around $1 billion. Just 1% change is, you know, pretty enormous. There's, like, plenty of room to grow. In terms of that first use case on stablecoins, there's about $300 ... billion in stablecoins out there. The prediction is that that will go quickly to $500 billion in the next couple of years on its way to, you know, almost $3 trillion in five years. That's all without paying interest. Imagine if you can provide a vehicle that will pay interest. You can see an enormous explosion in this money market tokenization world."
ICI: Assets Eke Out Record $7.8 Tril.
The Investment Company Institute published its weekly "Money Market Fund Assets" on Thursday. The report shows money fund assets increasing by $0.8 billion to a record high $7.818 trillion, after rising by $20.1 billion the previous week. The week prior, assets hit their previous record $7.817 trillion. Assets have risen in 20 of the last 25 weeks and 28 of the past 34 weeks. MMF assets are up by $794 billion, or 11.3%, over the past 52 weeks (through 3/11/26), with Institutional MMFs up $559 billion, or 13.4% and Retail MMFs up $234 billion, or 8.2%. Year-to-date in 2026, MMF assets are up by $84 billion, or 1.1%, with Institutional MMFs up $69 billion, or 1.5% and Retail MMFs up $15 billion, or 0.5%. ICI's weekly release says, "Total money market fund assets increased by $774 million to $7.82 trillion for the week ended Wednesday, March 11, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $1.73 billion and prime funds increased by $3.06 billion. Tax-exempt money market funds decreased by $559 million." ICI's stats show Institutional MMFs decreasing $9.8 billion and Retail MMFs increasing $10.6 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.429 trillion (82.2% of all money funds), while Total Prime MMFs were $1.247 trillion (16.0%). Tax Exempt MMFs totaled $141.6 billion (1.8%). It explains, "Assets of retail money market funds increased by $10.57 billion to $3.09 trillion. Among retail funds, government money market fund assets increased by $7.38 billion to $1.96 trillion, prime money market fund assets increased by $3.61 billion to $1.00 trillion, and tax-exempt fund assets decreased by $415 million to $128.56 billion." Retail assets account for 39.6% of the total, and Government Retail assets make up 63.4% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $9.80 billion to $4.73 trillion. Among institutional funds, government money market fund assets decreased by $9.11 billion to $4.47 trillion, prime money market fund assets decreased by $548 million to $242.50 billion, and tax-exempt fund assets decreased by $144 million to $13.06 billion." Institutional assets accounted for 60.4% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $1.3 billion to $8.242 trillion month-to-date in March (as of 3/11), assets hit a record high on March 3 of $8.271 trillion. (Our asset series previous record high, $8.253 trillion, was set on 3/2/26.) Assets 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 $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. MMFs fell by $24.4 billion in April, but rose $2.8 trillion in March and $94.2 billion last February. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
ECB Posts Stablecoin Working Paper
The European Central Bank (ECB) recently published a working paper titled, "Stablecoins and monetary policy transmission." Its summary states, "Digital assets are becoming an increasingly visible part of the financial system. Among them, stablecoins, i.e. crypto-assets designed to maintain a stable value, usually by being linked to a major currency such as the U.S. dollar or the euro, have grown rapidly. Unlike volatile crypto-assets such as Bitcoin, stablecoins are often marketed as digital equivalents of bank deposits. Currently, their use is primarily linked to increasing demand for the settlement of tokenised assets, reflecting the growth of crypto-asset trading ecosystems. While stablecoins promise faster and cheaper payments and greater financial innovation, their broader use as a means of payment or as a store of value raises important questions about financial stability, the role of banks, and the effectiveness of monetary policy. This study examines these issues with a focus on the euro area." The ECB asks, "How do stablecoins affect banks? The first key finding is that growing use of stablecoins can lead people and firms to move money out of traditional bank deposits and into digital assets. Banks rely heavily on deposits as a stable and low-cost source of funding to support lending to households and businesses. When deposits decline, banks may be forced to rely more on wholesale or market-based funding, which is typically more expensive and less stable. Our analysis shows that increasing interest in and attention toward stablecoins are associated with a measurable decline in retail bank deposits and a reduction in bank lending to firms. In other words, stablecoins can reduce the amount of credit banks provide to the real economy. Importantly, these effects are nonlinear and depend critically on the scale of stablecoin adoption, their design features, and their regulatory treatment." They comment, "What does this mean for monetary policy? The second finding concerns how monetary policy works. In the euro area, banks play a central role in transmitting interest rate changes to households and firms. When deposits shift into stablecoins, this transmission mechanism changes. We find that stablecoin adoption interfere with multiple monetary policy transmission channels, potentially weakening the predictability of policy actions." The summary concludes, "These findings highlight the importance of thoughtful regulation. Measures such as stronger transparency requirements for stablecoin reserves, robust redemption guarantees, adequate capital buffer to absorb losses and effective oversight can reduce financial risks. At the same time, initiatives such as central bank digital currencies may offer a public alternative that preserves monetary sovereignty while supporting innovation. Design choices are central to understanding the structural differences between these instruments. In the European context, for example, holding limits crystallize the distinction between stablecoins and a digital euro. By capping individual holdings, the digital euro is explicitly framed as a transactional instrument, thereby protecting commercial bank deposits and reinforcing financial stability. These limits reduce the risk of large-scale deposit migration into central bank money during periods of stress and help preserve the effectiveness of monetary policy transmission."
Fitch Ratings' Q4'25 LGIP Update
Fitch Ratings published "U.S. Local Government Investment Pools Monitor: 4Q25," which tells us, "Fitch Ratings' two local government investment pool (LGIP) indices experienced asset increases in the fourth quarter of 2025 (4Q25). Total assets for the Fitch Liquidity LGIP Index and the Fitch Short-Term LGIP Index were $661.1 billion at quarter end, marking an increase of $34.7 billion QoQ and $13.9 billion YoY. While total assets for the indices continue to reach new highs, YoY percentage growth rates have continued to slow, dropping from double-digit increases in pre-2024 to low single-digit growth as of year-end. The Fitch Liquidity LGIP Index rose by 5.2% QoQ and the Fitch Short-Term LGIP Index by 6.2% QoQ, consistent with average fourth quarter increases of 6.8% and 10.3%, respectively, over the past three years." The update continues, “Both Fitch indices ended the quarter with decreased average yield profiles, as net yields averaged 3.84% for the Liquidity Index and 3.99% for the Short-Term Index, a decline of 34 bps and 10 bps, respectively. This drop reflects the impact of the Federal Reserve's cumulative 75-basis point rate cuts in October and December, which lowered the target range to 3.50%-3.75% by year end. Weighted average maturities (WAMs) remained largely stable in 4Q25, as managers responded to ongoing rate cuts by moderately extending durations in an effort to preserve current yields ahead of anticipated further declines. The WAM for the Fitch Liquidity LGIP Index eased to 39 days in Q4 from 40 days in Q2, remaining above prime '2a-7' money market funds (MMFs) at 31 days. The Fitch Short Term LGIP Index ended the quarter with a duration of 1.30 years, down 2% since last quarter." The brief adds, "The Fitch Liquidity LGIP Index increased exposure to repurchase agreements by 3.1% while reducing exposure to Commercial Paper by 4.5% QoQ. This is consistent with allocation shifts in prime '2a-7' MMFs in Q4, driven by investor flows and supply in the repo market, as well as tighter spreads and lower supply in commercial paper, at year-end. These allocation changes highlight LGIPs' active approach to maintaining liquidity."
Money Fund Yields Inch down to 3.48%
Money fund yields (7-day, annualized, simple, net) were down 1 basis point to 3.48% on average during the week ended Friday, March 6 (as measured by our Crane 100 Money Fund Index), after decreasing 1 basis point the week prior. Fund yields haven'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 six weeks ago. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 681), shows a 7-day yield of 3.38%, down 1 bp in the week through Friday. Prime Inst money fund yields were unchanged at 3.60% in the latest week. Government Inst MFs were down 1 bp at 3.48%. Treasury Inst MFs were down 1 bp at 3.44%. Treasury Retail MFs currently yield 3.21%, Government Retail MFs yield 3.20% and Prime Retail MFs yield 3.38%, Tax-exempt MF 7-day yields were down 24 bps to 1.53%. Money market mutual fund assets have paused since hitting a record high of $8.271 trillion on March 3, according to our Money Fund Intelligence Daily. Assets have risen $3.8 billion in the week through Friday, and they've increased by $3.8 billion in March month-to-date (through 3/6). MMF assets 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, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April. Assets increased by $2.8 billion in March, and $94.2 billion last February. Weighted average maturities were at 42 days for the Crane MFA and 43 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (3/6), just 159 money funds (out of 791 total) yield under 3.0% with $190.9 billion in assets, or 2.3%, while the vast majority (632) of funds yield between 3.00% and 3.99% ($8.054 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point eleven weeks prior. The latest Brokerage Sweep Intelligence, with data as of March 6, 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.
Airwallex Offers JPM USD MMF
A press release titled, "Airwallex Expands High-Yield Treasury Offering to U.S. Businesses; Surpasses US$1 Billion in Global Assets Under Administration," tells us, "Airwallex, a leading global financial platform for modern businesses, ... announced the U.S. launch of Yield, a treasury solution designed to help businesses optimize returns on idle cash. With Yield, customers can quickly and seamlessly move funds from their Airwallex cash balances into a AAA-rated money market fund managed by J.P. Morgan Asset Management, with the opportunity to earn returns that outperform traditional bank savings." It explains, "Since its initial debut in Australia just over two years ago, Yield has seen rapid global adoption, recently surpassing US$1 billion in global assets under administration. Usage data highlights the specific drivers behind this growth: SME Market Traction: This momentum is driven by small-to-medium enterprises with less than $10M in annual revenue, demonstrating that institutional-grade returns are a critical priority for the segment. Operational Simplicity: Customers are using Yield as a 'set and forget' account, treating it with the ease of a traditional savings account to ensure their idle funds are consistently productive. Managing Global Volatility: The majority of these funds are held in USD, as companies increasingly seek to protect capital against local currency volatility and macro-economic uncertainty." Jack Zhang, co-founder and CEO of Airwallex, comments, "Topping $1 billion is a testament to the demand for a new kind of banking experience -- one that is global, digital-first, and institutional-grade. With the launch of Yield in the U.S., we are closing the gap in the market for a unified platform. We are giving U.S. businesses a seamless way to operate across currencies, while ensuring their working capital is actively generating value, not sitting in an idle account." The release adds, "Airwallex Yield offers U.S. businesses a sophisticated alternative to traditional savings accounts, which often offer negligible returns. By providing seamless access to an AAA-rated money market fund managed by J.P. Morgan Asset Management, Airwallex enables finance teams to optimize their USD balances with the liquidity required for daily operations."
ICI: MMF Assets Hit Record $7.8 Tril.
The Investment Company Institute published its weekly "Money Market Fund Assets" on Thursday. The report shows money fund assets increasing by $20.1 billion to a record high $7.817 trillion, after rising by $5.7 billion the previous week. Eight weeks ago, assets hit their previous record $7.804 trillion. Assets have risen in 19 of the last 24 weeks and 27 of the past 33 weeks. MMF assets are up by $791 billion, or 11.3%, over the past 52 weeks (through 3/4/26), with Institutional MMFs up $550 billion, or 13.1% and Retail MMFs up $242 billion, or 8.5%. Year-to-date in 2026, MMF assets are up by $84 billion, or 1.1%, with Institutional MMFs up $79 billion, or 1.7% and Retail MMFs up $4 billion, or 0.1%. ICI's weekly release says, "Total money market fund assets increased by $20.11 billion to $7.82 trillion for the week ended Wednesday, March 4, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $18.68 billion and prime funds increased by $3.41 billion. Tax-exempt money market funds decreased by $1.98 billion." ICI's stats show Institutional MMFs increasing $10.1 billion and Retail MMFs increasing $10.1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.430 trillion (82.3% of all money funds), while Total Prime MMFs were $1.244 trillion (15.9%). Tax Exempt MMFs totaled $142.2 billion (1.8%). It explains, "Assets of retail money market funds increased by $10.05 billion to $3.08 trillion. Among retail funds, government money market fund assets increased by $9.24 billion to $1.95 trillion, prime money market fund assets increased by $2.43 billion to $1.00 trillion, and tax-exempt fund assets decreased by $1.62 billion to $128.97 billion." Retail assets account for 39.4% of the total, and Government Retail assets make up 63.3% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $10.06 billion to $4.73 trillion. Among institutional funds, government money market fund assets increased by $9.44 billion to $4.48 trillion, prime money market fund assets increased by $981 million to $243.05 billion, and tax-exempt fund assets decreased by $366 million to $13.21 billion." Institutional assets accounted for 60.6% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $300 million to $8.241 trillion month-to-date in March (as of 3/4), assets hit a record high the day prior (3/3) of $8.271 trillion. (Our asset series previous record high, $8.253 trillion, was set on 3/2/26.) Assets 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 $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. MMFs fell by $24.4 billion in April, but rose $2.8 trillion in March and $94.2 billion last February. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
ICI on Repo Market and Mutual Funds
The Investment Company Institute recently posted a "Viewpoint" titled, "The Repo Market Has Vulnerabilities. Mutual Funds Aren't One of Them." The brief tells us, "The repo market is essential to government bond markets and the broader financial system. It also finances leveraged trading strategies that are overwhelmingly undertaken by hedge funds, not regulated mutual funds. Yet recent concerns expressed by policymakers, including the Financial Stability Board and the European Central Bank, increasingly draw regulated funds into the scope of the debate simply because they appear as counterparties in repo transactions. Acting as a counterparty does not make a mutual fund the source of leverage or the driver of repo financed strategies. What matters is not who participates in repo transactions, but how vulnerabilities are generated." It continues, "The real vulnerabilities lie in structural leverage, heavy reliance on short-term funding, and concentrated intermediation. The latest report on government bond-backed repo markets, covering roughly $16 trillion in activity, illustrates exactly how those vulnerabilities arise. It points to dependence on overnight funding, concentrated clearing and dealer capacity, and leverage embedded in financing channels as key amplifiers of stress. About half of repo transactions are financed overnight, meaning that funding can disappear precisely when markets come under strain. These are structural vulnerabilities. They are not created by the presence of regulated mutual funds on the other side of a trade." ICI adds, "In repo markets, regulated funds typically act as counterparties and liquidity providers, not as sources of fragility. Conflating constrained, regulated fund activity with leveraged financing strategies risks obscuring the real problem and targeting the wrong mechanisms altogether.... The risk does not arise from price-alignment strategies themselves. It arises from how those strategies are financed -- through significant leverage, short-term funding, and reliance on concentrated intermediaries. Targeting regulated funds does nothing to address those financing mechanics." (See also the OFR's, "Hedge Fund Participation in Cleared Repo.")
Fitch U.S. MMF Monitor: 4Q25
Fitch Ratings recently published, "U.S. Money Market Funds Monitor: 4Q25." It states, "Total taxable money market fund (MMF) assets increased by $386.5 billion, a 5.1% rise since the prior quarter, and grew by $918.2 billion over the year to a record high of $7.95 trillion, representing a 13% YoY increase, according to Crane Data. Government and Treasury MMFs gained $213.9 and $159.8 billion in assets during the quarter, while Prime MMFs saw more modest inflows of just $12.8 billion. These flows continue the trends seen in the first three quarters of 2025, reflecting investors' appetite for safety and liquidity amid mixed economic signals, geopolitical risks, and spread compression in credit alternatives." Fitch's update continues, "Taxable MMFs increased exposure to Treasuries by $290.8 billion and Repos by $219.2 billion over the quarter. FICC-cleared repos accounted for $155.2 billion of repo volume, reaching a record high of $1.3 trillion in December. Meanwhile, commercial paper decreased by $24 billion, according to Crane Data. This shift in allocations reflects managers' preference for liquidity and credit quality, even as two Fed rate cuts in Q4 provided incentives to capture higher yields. Increased Treasury allocations allowed MMFs to lock in yields as rates declined, while repos offered flexibility and access to liquidity during seasonal, year-end flows and narrower spreads muted appetite for credit." It adds, "Throughout 2025, the Federal Reserve implemented three rate cuts totaling 75 basis points, bringing the federal funds target down to 3.50-3.75% by year-end. These actions, driven by moderating inflation and a softening labor market, set the stage for declining money market fund yields. Institutional government and prime MMF net yields dropped by 36 basis points in Q4, ending the year at 3.59% and 3.69%, respectively. Looking ahead, further but more gradual easing is expected in 2026. This will likely keep MMF yields on a downward path, though investor demand is expected to remain strong given expectations for a moderate neutral rate range."
Money Fund Yields Still Hover at 3.49%
Money fund yields (7-day, annualized, simple, net) were down 1 basis point to 3.49% on average during the week ended Friday, February 27 (as measured by our Crane 100 Money Fund Index), after increasing 1 basis point the week prior. Fund yields haven'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 five weeks ago. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 681), shows a 7-day yield of 3.39%, unchanged in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.60% in the latest week. Government Inst MFs were unchanged at 3.49%. Treasury Inst MFs were unchanged at 3.45%. Treasury Retail MFs currently yield 3.21%, Government Retail MFs yield 3.19% and Prime Retail MFs yield 3.39%, Tax-exempt MF 7-day yields were down 28 bps to 1.76%. Money market mutual fund assets have paused since hitting a record high of $8.246 trillion on February 26, according to our Money Fund Intelligence Daily. Assets have risen $26.9 billion in the week through Friday, and they've increased by $99.5 billion in February month-to-date (through 2/27). MMF assets increased by $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, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April. Assets increased by $2.8 billion in March, and $94.2 billion last February. Weighted average maturities were at 41 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 (2/27), just 158 money funds (out of 791 total) yield under 3.0% with $192.2 billion in assets, or 2.3%, while the vast majority (633) of funds yield between 3.00% and 3.99% ($8.049 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point ten weeks prior. The latest Brokerage Sweep Intelligence, with data as of February 27, 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.
Bloomberg: OCC, Stablecoin Rewards
Bloomberg writes, "Federal Bank Regulator Moves to Restrict US Stablecoin Rewards." The article explains, "The Office of the Comptroller of the Currency proposed rules that would restrict companies from launching branded stablecoins through white-label platforms and offering rewards tied to them, the agency's first major attempt to implement the federal cryptocurrency law signed by President Donald Trump in July. The proposed rulemaking, introduced this week, takes aim at stablecoin-as-a-service platforms operated by firms like Paxos, Stripe Inc.’s Bridge and Anchorage Digital Bank that allow technology companies to issue their own branded stablecoins -- arrangements the banking industry has warned could siphon deposits from traditional lenders. The OCC is attempting to address the banking industry's concerns." The piece quotes Jonathan Gould, head of the OCC, from a Senate Banking Committee hearing, "If you look in our proposal, which we released yesterday, we have hard wired a number of things into our proposal that we believe would tend to reduce the probability of deposit flight. If deposit flight were to occur, I think we would notice it, meaning it wouldn't occur under cover of darkness, where no one would see it and fail to react to it." Bloomberg adds, "The OCC is considering and requesting comment on plans to restrict each permitted payment stablecoin issuer to offer only one brand of stablecoin. If that restriction is put in place, the regulator would streamline the process for approving applications to become permitted payment stablecoin issuers. Paxos' arrangement issuing PayPal Holdings Inc.'s PYUSD coin, which offers 4% rewards on customer balances, for example, would likely not be able to continue if the current language stands."
