Link of The Day
Fed Minutes on Elevated Repo Rates
The Federal Reserve posted its "Minutes of the Federal Open Market Committee, December 9–10, 2025" on Tuesday, which tell us, "The manager noted that money market conditions continued to tighten over the intermeeting period and that the staff assessed that conditions were consistent with the level of reserves having declined to the ample region. Rates on Treasury repurchase agreements (repo) remained relatively elevated and volatile over the intermeeting period. Investors attributed firmness in repo rates to a decline in available liquidity and continued large Treasury debt issuance. Higher repo rates, along with a lower level of reserves, continued to contribute to upward pressure on the spread between the effective federal funds rate (EFFR) and the interest rate on reserve balances. The manager noted that the correlation between this spread and the level of reserve balances had risen notably over the past couple of months and that the EFFR had moved up faster than it had during the previous episode of balance sheet runoff. Consistent with elevated repo rates, usage of overnight reverse repo operations remained low, while both the frequency and volume of standing repo operations increased over the intermeeting period. Some other key indicators of reserve ampleness, such as the share of payments by banks occurring later in the day and the share of domestic banks borrowing in the federal funds market, also pointed to ample reserve conditions." The FOMC says, "Participants agreed that recent money market conditions pointed to reserves being within the ample range and that beginning RMPs would be prudent to maintain a supply of ample reserves. A couple of participants remarked that the recent increase in the spread between the EFFR and the interest rate on reserve balances had been faster than during the Federal Reserve's 2017–19 runoff experience, and a couple of participants observed that triparty repo rates had been averaging somewhat above the interest rate on reserve balances. Participants expressed their preferences for purchases to be in Treasury bills so that the SOMA portfolio composition would begin to shift toward that of Treasury securities outstanding, though no decision was made on the composition of the portfolio in the long run. Policymakers generally emphasized the importance of communicating that RMPs would be made solely to ensure interest rate control and smooth market functioning and had no implications for the stance of monetary policy." They add, "Conditions in U.S. short-term funding markets remained orderly but were generally tighter over the intermeeting period. In secured markets, liquidity conditions were tighter, on average, amid robust Treasury issuance, declining reserve balances in recent months, and month-end pressures.... In support of the Committee's goals and in light of the shift in the balance of risks, nine members agreed to lower the target range for the federal funds rate by 1/4 percentage point to 3 1/2 to 3 3/4 percent." Finally, they state, "At the conclusion of the discussion, the Committee voted to direct the Federal Reserve Bank of New York, until instructed otherwise, to execute transactions in the SOMA in accordance with the following domestic policy directive, for release at 2:00 p.m.: 'Effective December 11, 2025, the Federal Open Market Committee directs the Desk to: Undertake open market operations as necessary to maintain the federal funds rate in a target range of 3 1/2 to 3 3/4 percent. Conduct standing overnight repurchase agreement operations at a rate of 3.75 percent. Conduct standing overnight reverse repurchase agreement operations at an offering rate of 3.5 percent and with a per-counterparty limit of $160 billion per day. Increase the System Open Market Account holdings of securities through purchases of Treasury bills and, if needed, other Treasury securities with remaining maturities of 3 years or less to maintain an ample level of reserves. Roll over at auction all principal payments from the Federal Reserve's holdings of Treasury securities. Reinvest all principal payments from the Federal Reserve’s holdings of agency securities into Treasury bills.'"
Forbes on 2026 Outlook, Cash, Bonds
Forbes writes on "What Interest Rates, Markets And The 2026 Economic Outlook Mean For Your Money." They comment, "Years of soaring inflation, aggressive interest-rate hikes and volatile markets could give way to a smoother financial ride in 2026 depending on several still unpredictable factors." A section, "Bonds And Cash Are Back From The Dead," tells us, "Bonds and cash like instruments, such as high-yield savings or money-market funds, have again started paying noticeably higher interest. While many analysts expect only modest returns from fixed income, Forbes contributor Brett Owens writes that, '2026 could be the best year for bond investors in years.' Next year, expect to see: Investment grade bonds: Because they're no longer extremely low, these bonds can again do what they're meant to do by providing steady income and protecting your portfolio when stocks fall. Short term instruments: Treasury bills, money market funds and short term bond funds may still offer attractive yields with less volatility than stocks or long duration bonds." The piece states, "If you're close to retirement, you no longer have to choose between taking on extra risk just to earn income or settling for low returns on safe assets. With yields rising [sic], a traditional mix of stocks and bonds is once again considered a practical, balanced approach for earning income and managing risk. 'Retirement means shifting from accumulating wealth to generating cash flow,' Forbes contributor True Tamplin says. Today's rates make that transition more negotiable."
Bond Fund Symposium, March 19-20
Crane Data is ramping up preparations for our ninth annual Bond Fund Symposium, which focuses on ultra-short bond funds and which will take place March 19-20, 2026 at the Hyatt Regency in Boston, Mass. Crane's Bond Fund Symposium offers a concentrated and affordable educational experience, as well as an excellent networking venue, for bond fund and fixed-income professionals. Registrations are now being accepted ($1,000) and sponsorship opportunities (and discounts) are available. We're still looking for a couple of speakers, but see our latest agenda and details below. (We'll also be hosting a Crane Data 20th Birthday Party alongside BFS, so please join us Thursday, March 19 from 5:00-7:00pm at the Boston Hyatt Regency.) Portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of bond funds and fixed-income investing will benefit from our comprehensive program. A block of rooms has been reserved at the Hyatt Regency Boston. We'd like to thank our past sponsors and exhibitors -- Northern Trust Asset Management, Fitch Ratings, Fidelity Investments, J.P. Morgan Asset Management, Invesco, BofA Securities, Bloomberg Intelligence, Federated Hermes, Payden & Rygel, PIMCO and Dechert -- for their support. (We'd also love to get some new ones!) E-mail us for more details. We're also making plans for our next "big show," Money Fund Symposium, which will be held June 24-26, 2026, at The Hyatt Regency Jersey City in Jersey City, N.J. (Let us know if you'd like details on speaking or sponsoring.) Also, mark your calendars for our next European Money Fund Symposium, which will be held Sept. 24-25, 2026 in Paris, France. Finally, thanks to those who supported our recent Money Fund University in Pittsburgh! Mark your calendars too for next year's MFU, which will be held Dec. 17-18, 2026 in Greenwich, Conn. (MFU attendees and subscribers may access the conference materials via our "Money Fund University 2025 Download Center.") Watch for details on these shows in coming weeks and months. Merry Christmas, Happy Holidays and Happy New Year from Crane Data and Money Fund Intelligence, and we hope to see you in Boston, Jersey City, Paris or Greenwich in 2026!
Morningstar on Funds for Rate Cuts
Morningstar Says, "Consider These Funds to Manage Your Cash Amid Fed Rate Cuts." The article explains, "[T]he market is still anticipating at least 50 basis points of cuts over the coming 12 months, according to the CME FedWatch Tool. This key rate is a primary monetary policy lever and a benchmark for other short-term interest rates, affecting yields on money market funds and other short-term strategies.... But falling short-term yields shouldn't lead you to chuck your short-term funds. While the yield of the three-month Treasury bill remained slightly above that of the three-year Treasury note in December 2025, history has shown that the yield curve will likely steepen, causing yields on the very front of the curve to fall more than longer yield. Against this backdrop, investors should be thoughtful about where they park their cash and short-term investments. Effectively managing short-term liquidity by adding incremental yield where possible can add up over time. The average retail taxable government money market fund yielded less than 4% at the end of November 2025 and will likely trend lower as the Fed considers more rate cuts. With a positively sloped and steeper yield curve, investors should consider opportunities to add more value by extending into active ultrashort and short-term fixed-income funds, which can offer higher yields but come with moderate interest rate risk. Consider these general holding period guidelines for managing liquidity: a money market fund for immediate cash needs, an ultrashort fund for a period of six months to 1.5 years, and a short-term fund for 1.5 to 3.0 years. Here are some of the top investment choices to consider." The piece continues, "Pimco's veteran short-term and liquidity specialists manage Pimco Short-Term PSHAX, a top-tier offering in the ultrashort bond Morningstar Category.... The fund relies on a flexible mandate and a deep toolkit to navigate the best opportunities on the front end of the yield curve. Its emphasis on corporate and securitized sectors, which offer incremental yield over risk-free Treasuries, helps generate an attractive yield. As of Nov. 30, 2025, the fund's SEC yield was around 4.0%. It also comes in a more cost-effective exchange-traded fund wrapper, although it is slightly tamer than its flagship offering; Gold-rated Pimco Enhanced Short Maturity Active ETF MINT touts a 4.07% SEC yield." It adds, "Vanguard Short-Term Investment-Grade VFSUX takes a slightly different approach from other more diversified funds. Its duration is longer than ultrashort offerings and therefore can be more susceptible to changes in interest rates, but less than that of intermediate funds. This fund's 4.20% SEC yield mostly comes from its large allocations to industrial and financial corporate bonds as well as smaller stakes in Treasuries and asset-backed debt."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of December 19) includes Holdings information from 74 money funds (up 12 from a week ago), or $4.581 trillion (up from $4.101 trillion) of the $8.009 trillion in total money fund assets (or 57.2%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our December 10 News, "Dec. Money Fund Portfolio Holdings: Assets, Treasuries and Repo Surge." ) Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $2.188 trillion (up from $1.988 trillion a week ago), or 47.8%; Repurchase Agreements (Repo) totaling $1.600 trillion (up from $1.447 trillion a week ago), or 34.9%, and Government Agency securities totaling $406.3 billion (up from $370.3 billion a week ago), or 8.9%. Commercial Paper (CP) totaled $177.4 billion (up from $140.9 billion a week ago), or 3.9%. Certificates of Deposit (CDs) totaled $89.4 billion (up from $72.0 billion a week ago), or 2.0%. The Other category accounted for $62.6 billion or 1.4%, while VRDNs accounted for $57.7 billion or 1.3%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $2.190 trillion, Fixed Income Clearing Corp with $591.3B, the Federal Home Loan Bank with $231.5B, JP Morgan with $146.5B, RBC with $124.3B, Federal Farm Credit Bank with $105.1B, BNP Paribas with $91.5B, Citi with $90.3B, Wells Fargo with $89.7B and Barclays PLC with $56.5B. The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($329.6B), JPMorgan 100% US Treas MMkt ($286.8B), Goldman Sachs FS Govt ($276.2B), Fidelity Inv MM: Govt Port ($264.2B), State Street Inst US Govt ($212.4B), Morgan Stanley Inst Liq Govt ($201.7B), BlackRock Lq FedFund ($196.0B), Federated Hermes Govt ObI ($174.2B), BlackRock Lq Treas Tr ($173.8B) and Dreyfus Govt Cash Mgmt ($165.8B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Money Fund Yields Inch Down to 3.58%
Money fund yields (7-day, annualized, simple, net) decreased by 8 bps to 3.58% on average during the week ended Friday, December 19 (as measured by our Crane 100 Money Fund Index), after decreasing 9 bps the week prior. Fund yields should move lower in coming days as they digest the remainder of the Fed's Dec. 10 25 bps rate cut. Yields were 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, 4.10% on 5/31, 4.13% on 4/30/25, 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 679), shows a 7-day yield of 3.49%, down 8 bps in the week through Friday. Prime Inst money fund yields were down 10 bps at 3.67% in the latest week. Government Inst MFs were down 8 bps at 3.60%. Treasury Inst MFs were down 6 bps at 3.55%. Treasury Retail MFs currently yield 3.32%, Government Retail MFs yield 3.29% and Prime Retail MFs yield 3.47%, Tax-exempt MF 7-day yields were up 44 bps to 2.69%. Assets of money market funds fell by $47.4 billion last week to $8.009 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $8.066 trillion on December 11. Month-to-date in December (through 12/19), MMF assets have increased $26.9 billion, after increasing by $132.8 billion in November, $142.1 billion in October, $105.2 billion in September, $132.0 billion in August, $63.7 billion in July, $6.7 billion in June, $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January and $110.9 billion last December. Weighted average maturities were at 39 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (12/19), 138 money funds (out of 789 total) yield under 3.0% with $146.8 billion in assets, or 1.8%; 643 funds yield between 3.00% and 3.99% ($7.818 trillion, or 97.6%), 8 funds yield between 4.0% and 4.99% ($44.9 billion, or 0.6%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more.`Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was down 1 bp at 0.30% <b:>`_, after falling 1 basis point the week prior. The latest Brokerage Sweep Intelligence, with data as of December 19, shows two changes over the past week. RW Baird lowered rates for accounts of $1K to $999K to 0.98%, to 1.55% for accounts of $1 million to $1.9 million and to 2.02% for accounts of $5 million and greater. UBS lowered rates for accounts of $1K to $499K to 0.03% and to 0.1% for accounts of $4 million to $9.9 million. Three 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 and Morgan Stanley.
Amundi Tokenises Shares of EUR MMF
A press release titled, "Amundi tokenises the first mutual fund to expand investor access" tells us, "In November, we launched our first tokenized share of one of our money market fund. The initial subscription took place on November 4 and the fund is now distributed in a hybrid way: it remains accessible via standard distribution networks and, from now on, via the tokenized share. Driven by growing customer demand for digital assets, this innovation opens the door to simple, immediate, 24/7 access to broad investment opportunities." It explains, "This project was completed in a record time of four months, based on three years of research on tokenization and close collaboration between the Legal, Compliance, Investments, Risk and Marketing teams in France, Italy and Luxembourg at Amundi, Crédit Agricole and CACEIS. The technology and infrastructure for the tokenisation of unit-linked funds, the digital wallets for investors, as well as the digital order platform for subscriptions and redemptions are provided by CACEIS." The piece adds, "This first class of tokenized shares is just the beginning and we are gradually adding new features to our tokenization offering, based on specific business cases allowing the integration of external customers." Earlier, The Block wrote, "Europe's largest asset manager Amundi tokenizes money market fund on Ethereum." They comment, "Amundi, Europe's largest asset manager with approximately $2.3 trillion in assets under management, has announced the launch of the first tokenized shares of one of its money market funds. According to the firm, the fund is now available as a new tokenized share class labeled Amundi Funds Cash EUR - DLT, using distributed ledger technology. The new share class is recorded on the public blockchain, which the Paris-headquartered firm said enables transparent record-keeping of fund units and full transaction traceability. Amundi framed the launch as a milestone in its wider digital assets roadmap, positioning tokenization as a way to modernize fund infrastructure and broaden investor access. The initiative was built in collaboration with CACEIS, one of Europe's top asset-servicing providers and transfer agents. CACEIS supplies the technology stack for the fund's tokenization, including digital wallets for investors and a blockchain-based order platform supporting subscriptions and redemptions."
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets increasing by $10.7 billion to a record $7.666 trillion after increasing by $1.2 billion the previous week. Assets have risen in 11 of the last 13 weeks and 19 of the past 22 weeks. MMF assets are up by $915 billion, or 13.6%, over the past 52 weeks (through 12/17/25), with Institutional MMFs up $561 billion, or 13.8% and Retail MMFs up $354 billion, or 13.1%. Year-to-date, MMF assets are up by $815 billion, or 11.9%, with Institutional MMFs up $500 billion, or 12.1% and Retail MMFs up $316 billion, or 11.5%. ICI's weekly release says, "Total money market fund assets increased by $10.74 billion to $7.67 trillion for the week ended Wednesday, December 17.... Among taxable money market funds, government funds increased by $11.30 billion and prime funds decreased by $2.32 billion. Tax-exempt money market funds increased by $1.75 billion." ICI's stats show Institutional MMFs increasing $9.5 billion and Retail MMFs increasing $1.2 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.302 trillion (82.2% of all money funds), while Total Prime MMFs were $1.218 trillion (15.9%). Tax Exempt MMFs totaled $146.5 billion (1.9%). It explains, "Assets of retail money market funds increased by $1.22 billion to $3.05 trillion. Among retail funds, government money market fund assets increased by $965 million to $1.92 trillion, prime money market fund assets decreased by $1.53 billion to $995.13 billion, and tax-exempt fund assets increased by $1.78 billion to $134.35 billion." Retail assets account for 39.8% of the total, and Government Retail assets make up 63.0% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $9.52 billion to $4.62 trillion. Among institutional funds, government money market fund assets increased by $10.33 billion to $4.38 trillion, prime money market fund assets decreased by $792 million to $222.75 billion, and tax-exempt fund assets decreased by $24 million to $12.11 billion." Institutional assets accounted for 60.2% of all MMF assets, with Government Institutional assets making up 94.9% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $50.3 billion to $8.033 trillion month-to-date in December (as of 12/17), this past week they also hit a record high of $8.066 trillion on 12/11. Assets increased by $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, $94.2 billion in February and $52.8 billion in January. They jumped $110.9 billion last December. 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.
Fed Publishes History of Money Funds
The Federal Reserve published a "History" piece on "Money Market Mutual Funds," which gives a nice basics and brief overview of the asset class. They write, "Money market mutual funds (MMMFs) arose in the 1970s. At the time, market interest rates were higher than the rates that commercial banks were permitted to pay on their deposits by federal banking regulation, spurring the growth of investment alternatives outside of banks including MMMFS. Since MMMFS are not banks, they developed largely outside of the sphere of Federal Reserve operations or regulations until the advent of severe financial crises in 2008 and 2020, when the Fed made emergency loans to support MMMFs and the broader economy. In addition, since 2013 the Fed has interacted with MMMFs regularly through open market operations in the context of implementing monetary policy." The Fed explains, "Money market funds began largely as a workaround to regulations that limited the interest rates depository institutions were allowed to pay depositors. These limits, known as Regulation Q, were required by federal law beginning in 1933 and were implemented by the Federal Reserve and other financial regulators. As interest rates rose in the 1970s, Regulation Q gave depositors an incentive to find short-term investments outside of the banking system, such as Treasury bills, commercial paper, and repurchase agreements. MMMFs offered consumers the ability to invest in those instruments with some additional conveniences, including the ability to withdraw funds at any time, diversify across instruments, choose any specific investment size, and economize on administrative expenses." They comment, "These basic forces led to the establishment of the first MMMF in 1972. The number of funds grew to 36 in 1975, 90 in 1980, and 649 in 1990. Officials at depository institutions such as banks expressed concern that they could not compete with the interest rates offered by MMMFs. At times in the 1970s, depository institutions lost substantial amounts of funds to MMMFs.... The Monetary Control Act of 1980 required the phasing out of regulations on saving deposit interest rates. Thus, the presence of MMMFs played a central role in the unwinding of these 1930s-era regulations." The article adds, "A seminal moment in the history of MMMFs came in September 2008, when the Reserve Primary Fund suffered losses on commercial paper issued by Lehman Brothers. Investors staged a run, which quickly spread to affect many other money market funds. Over $400 billion was withdrawn from prime MMMFs, i.e., those that invested not just in safe government debt but also in somewhat riskier assets such as commercial paper (Makhija 2025). MMMFs experienced a second major episode of severe runs in 2020 at the onset of the pandemic. To protect investors, the Securities and Exchange Commission issues ... [a] new rule ... in 1983, known as rule 2a-7. This rule, which has since been revised several times, has governed several practices at MMMFs, including limitations on the maturity, credit quality, and liquidity of MMMF investments (Investment Company Institute 2012). After the 2008 crisis, the SEC revised this rule to allow funds to impose gates or fees to stop runs. However, in practice, the potential for MMMFs to impose gates or fees exacerbated runs in 2020 rather than preventing them, and revisions in 2023 largely removed the gates and fees. Much MMMF activity has migrated into funds that can invest only in government securities, which are subject to less stringent regulation because of the relative safety of those investments."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of December 12) includes Holdings information from 62 money funds (up 8 from two weeks ago), or $4.101 trillion (up from $3.452 trillion) of the $8.057 trillion in total money fund assets (or 50.9%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here <i:https://cranedata.com/publications/money-fund-portfolio-holdings/details/2025-12-1/>`_and our `December 10 News, "Dec. Money Fund Portfolio Holdings: Assets, Treasuries and Repo Surge." ) Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.988 trillion (up from $1.674 trillion two weeks ago), or 48.5%; Repurchase Agreements (Repo) totaling $1.447 trillion (up from $1.220 trillion two weeks ago), or 35.3%, and Government Agency securities totaling $370.3 billion (up from $329.5 billion two weeks ago), or 9.0%. Commercial Paper (CP) totaled $140.9 billion (up from $109.9 billion two weeks ago), or 3.4%. Certificates of Deposit (CDs) totaled $72.0 billion (up from $47.3 billion two weeks ago), or 1.8%. The Other category accounted for $42.8 billion or 1.0%, while VRDNs accounted for $39.2 billion or 1.0%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.988 trillion, Fixed Income Clearing Corp with $534.5B, the Federal Home Loan Bank with $216.3B, JP Morgan with $132.3B, RBC with $104.6B, Federal Farm Credit Bank with $91.0B, Citi with $84.8B, BNP Paribas with $84.5B, Wells Fargo with $76.4B and Barclays PLC with $48.8B. The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($323.0B), Goldman Sachs FS Govt ($283.1B), JPMorgan 100% US Treas MMkt ($282.8B), Fidelity Inv MM: Govt Port ($263.5B), State Street Inst US Govt ($208.4B), Morgan Stanley Inst Liq Govt ($193.7B), BlackRock Lq FedFund ($193.2B), Dreyfus Govt Cash Mgmt ($168.9B), BlackRock Lq Treas Tr ($164.6B) and Fidelity Inv MM: MM Port ($164.6B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Money Fund Yields Drop to 3.66%
Money fund yields (7-day, annualized, simple, net) decreased by 9 bps to 3.66% on average during the week ended Friday, December 12 (as measured by our Crane 100 Money Fund Index), after decreasing 3 bps the week prior. Fund yields should move lower in coming days as they digest the remainder of the Fed's Dec. 10 25 bps rate cut. Yields were 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, 4.10% on 5/31, 4.13% on 4/30/25, 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 679), shows a 7-day yield of 3.57%, down 9 bps in the week through Friday. Prime Inst money fund yields were down 11 bps at 3.77% in the latest week. Government Inst MFs were down 10 bps at 3.67%. Treasury Inst MFs were down 7 bps at 3.62%. Treasury Retail MFs currently yield 3.39%, Government Retail MFs yield 3.37% and Prime Retail MFs yield 3.57%, Tax-exempt MF 7-day yields were up 25 bps to 2.25%. Assets of money market funds rose by $27.6 billion last week to $8.057 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $8.066 trillion on December 11. Month-to-date in December (through 12/12), MMF assets have increased $74.4 billion, after increasing by $132.8 billion in November, $142.1 billion in October, $105.2 billion in September, $132.0 billion in August, $63.7 billion in July, $6.7 billion in June, $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January and $110.9 billion last December. Weighted average maturities were at 39 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (12/12), 142 money funds (out of 789 total) yield under 3.0% with $180.8 billion in assets, or 2.2%; 639 funds yield between 3.00% and 3.99% ($7.829 trillion, or 97.2%), 8 funds yield between 4.0% and 4.99% ($47.4 billion, or 0.6%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more.`Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was down 1 bp at 0.31% <b:>`_, after falling 1 basis point four weeks prior. The latest Brokerage Sweep Intelligence, with data as of December 12, shows two changes over the past week. Fidelity lowered rates for accounts of $1K to $5M and greater to 1.82% and Schwab lowered rates for accounts of $1K to $5M and greater to 0.01%. Three 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 and Morgan Stanley.
JPMorgan Treasury MM ETF Goes Live
A press release titled, "J.P. Morgan Asset Management Unveils New JPMorgan 100% U.S. Treasury Securities Money Market ETF (JMMF)," states, "J.P. Morgan Asset Management ... announced the launch of the JPMorgan 100% U.S. Treasury Securities Money Market ETF (JMMF) on the NYSE Arca. JMMF is designed to offer investors current income, easy access to their funds, and low volatility of principal, while also providing the convenience and transparency of an ETF. As demand for active ETFs continues to grow, investors are seeking more strategies across asset classes that offer greater transparency and trading flexibility." Travis Spence, Global Head of ETFs at J.P. Morgan Asset Management, comments, "We're excited to introduce JMMF, which brings together exposure to U.S. Treasury Securities with the flexibility of an ETF. This launch underscores our commitment to delivering innovative, client-focused solutions and empowering investors to manage liquidity with confidence." The release says, "JMMF invests exclusively in U.S. Treasury obligations, including Treasury bills, bonds, and notes, offering investors a robust solution for managing short-term liquidity needs. The fund features weekly income distributions, providing more frequent access to income compared to traditional money market mutual funds, which typically distribute monthly." JPMAM adds, "The fund is managed by Robert Motroni, Christopher Mercy, and Christopher Tufts, who together average 22 years of industry experience. This team has successfully managed J.P. Morgan's 100% Treasury Securities strategy since its inception in 1991. JMMF is competitively priced at 16 basis points, giving clients access to U.S. Treasury Securities investments with the added flexibility and transparency of an ETF structure." CEO of Asset Management Americas and Head of the Global Liquidity business within JPM Asset Management John Donohue tells us, "JMMF gives investors a straightforward way to access U.S. Treasury Securities while benefiting from the convenience and transparency of the ETF structure. Our decades of experience managing Treasury strategies, combined with the ETF format, enable us to deliver a product that meets the evolving needs of investors seeking security, flexibility, and transparency in their cash management." For more on Money Market ETFs, see these Crane Data News stories: "State Street Files for Prime Money Market ETF; 7th MM ETF, 2nd Prime" (11/4/25), "Barron's on Money-Market ETFs; JPMorgan Says MF Assets Headed Higher" (10/20/25), "JPMorgan Files for Money Market ETF" (7/10/25), "BlackRock Money Market ETFs Go Live; Ondo Finance on Tokenized MMFs" (2/6/25), "VettaFi Discusses Money Market ETFs" (12/11/24), "Dec. MFI: Assets Break $7.0 Tril; Top 10 of 2024; BlackRock MM ETFs" (12/6/24), "BlackRock Debuts First Euro MM ETF" (12/5/24), "FT on BlackRock Money Market ETFs" (11/18/24), "November BFI: Bond Funds Hit by Election; ETF Trends MM Substitutes" (11/15/24), "BlackRock Files for Money Market ETFs" (11/12/24) and "Texas Capital Launches Govt MM ETF" (9/26/24).
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