The European Central Bank issued a press release entitled, "Results of the Euro Money Market Survey 2015." Though there is nothing on money market funds in the study, the statement says, "Overall money market turnover in the second quarter of 2015 fell to the level of the same quarter of 2012, with a year-on-year decline of 12% to E69 trillion (compared with a revised 7% year-on-year rise in the second quarter of 2014).... Today the European Central Bank (ECB) is publishing the results of the "Euro Money Market Survey 2015," which highlights the main developments in the euro money market in the second quarter of 2015, comparing them with those in the second quarters of 2014 and previous years. The results of this year's survey, which are derived from a constant panel of 98 banks, show that overall turnover has declined in the main segments. This can be partly attributed to the relative attractiveness of instruments with longer maturities on account of value or regulatory considerations. The decline is especially noticeable in the largest market segment, the secured market, and in the unsecured market. Total turnover in secured lending and borrowing decreased by 13% to E28.6 trillion in the second quarter of 2015 compared with the same period a year earlier. The decline in volumes was most visible in the overnight maturity. However, the share of centrally cleared secured operations remained broadly stable, at 72% of all bilateral repo transactions. As in previous years, activity in the derivatives segments covered by the survey showed significant changes. Activity in foreign exchange (FX) swaps, the second-largest market segment, rose by 5% in the second quarter of 2015.... The qualitative part of the survey also shows that perceived market liquidity generally worsened compared with last year. The efficiency of the secured and unsecured market segments as well as that of the short-term securities market was perceived to have remained broadly unchanged, while the efficiency of the derivatives market was seen as having deteriorated slightly." In other news, Fitch Ratings issued the release, "Fitch Rates 4 Deutsche Global Liquidity Series plc Money Market Funds 'AAAmmf'." The funds are sub-funds of the Irish-domiciled umbrella fund, Deutsche Global Liquidity Series plc. The funds are: Deutsche Global Liquidity Series plc - Deutsche Managed Euro Fund, Deutsche Global Liquidity Series plc - Deutsche Managed Sterling Fund, Deutsche Global Liquidity Series plc - Deutsche Managed Dollar Fund, and Deutsche Global Liquidity Series plc - Deutsche Managed Dollar Treasury Fund. Another release, "Fitch Rates 2 BlackRock Institutional Cash Series plc Money Market Funds 'AAAmmf'," says, "They are sub-funds of the Irish-domiciled umbrella fund, BlackRock Institutional Cash Series plc. They are: BlackRock ICS Institutional Euro Liquidity Fund and BlackRock ICS Institutional Euro Government Liquidity Fund."
Money market fund assets rose for the second straight week following 3 weeks of big outflows, according to ICI's latest "Money Market Mutual Fund Assets" report. The release, which shows a big shift from Prime money funds into Treasury funds (one of the first we've seen), says, "Total money market fund assets increased by $8.40 billion to $2.67 trillion for the week ended Wednesday, September 30, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) increased by $27.26 billion and prime funds decreased by $17.02 billion. Tax-exempt money market funds decreased by $1.84 billion. Assets of retail money market funds decreased by $1.08 billion to $896.16 billion. Among retail funds, Treasury money market fund assets increased by $140 million to $205.38 billion, prime money market fund assets decreased by $230 million to $512.72 billion, and tax-exempt fund assets decreased by $990 million to $178.06 billion. Assets of institutional money market funds increased by $9.48 billion to $1.77 trillion. Among institutional funds, Treasury money market fund assets increased by $27.13 billion to $795.25 billion, prime money market fund assets decreased by $16.79 billion to $911.94 billion, and tax-exempt fund assets decreased by $860 million to $65.44 billion." Year-to-date, money fund assets are down $64 billion, or 2.3%. Month-to-date in September (since 9/3), MMF assets are down $9 billion. September is the first month since April that money market fund assets have declined. In other news, the Federal Reserve Bank of New York <i:>`_updated its `Reverse Repo Counterparties list to reflects a name change. Specifically, Goldman Sachs Financial Square Federal Fund changed its name to Goldman Sachs Financial Square Treasury Solutions Fund, effective October 1, 2015.
Dow Jones Business News writes, "BNY Mellon Unveils Repo Indexes." The article says, "Bank of New York Mellon Corp. has introduced a set of indexes tracking U.S. interest rates on certain short-term loans known as repurchase agreements, in the latest move to shed light on an obscure corner of the shadow banking system. Repurchase agreements, or repos, are a roughly $2.6 trillion market in which different types of lenders temporarily exchange cash for bonds, providing a critical source of funding for Wall Street securities dealers. They are often caught under the "shadow banking" moniker because the market involves loans made by nonbanks such as money-market funds. The three indexes -- for repos backed by high-quality collateral in the U.S. Treasury, agency and mortgage bond markets -- were unveiled by BNY earlier this month on its website, a spokesman said, after the company initially disclosed the index project in November last year." The Dow Jones piece adds, "Aggregated, publicly disseminated rates in the repo markets are few and far between. The Fed's repo facility, known as the overnight reverse repo program, offers a fixed daily rate of 0.05% under a program in which the New York Fed takes in loans in exchange for Treasury bonds as collateral.... To collect information on repo rates today, lenders in the $2.7 trillion money-market fund industry sometimes call around repo desks to compare quotes from as many as 20 different market participants before deciding how to invest their cash. The BNY rate that is being published daily is a U.S. dollar-weighted average of newly minted, overnight repo trades submitted into BNY's systems, including trades involving the Fed's reverse repo facility. As of Tuesday, the BNY tri-party aggregated repo rate for overnight trades backed by Treasurys was 0.05254%, just above the Fed's reverse repo rate of 0.05%." For more information, visit CME Group's "BNY Mellon Treasury Tri-Party Repo Index" page. In other news, Reuters writes, "U.S. Repo Rate Jumps to Highest in 3 Months," which says, "A key borrowing cost for Wall Street dealers jumped on Wednesday to its highest level in three months as cash investors reduced their lending at the end of the quarter... In the $5 trillion repo market, Wall Street dealers borrow from money market funds and other investors with Treasuries and other securities as collateral to fund their trades. At quarter-end, investors tend to scale back their repo exposure to conserve cash. Instead of repos, they put money into near risk-free Treasury bills, and fixed-rate reverse repurchase agreements offered by the Federal Reserve. On Wednesday, the Fed awarded $150 billion of two-day fixed-rate reverse repos to 70 bidders at an interest rate of 0.07 percent after it allotted $100 billion in seven-day reverse RRPs last week."
The Wall Street Journal writes, "When the Fed Lifts Off, This Is What to Watch at Banks." The article says, "The Federal Reserve's liftoff may be far more turbulent for banks than many expect. Investors should buckle up. Bank stocks have taken a beating in recent weeks as investors pared back expectations about the upside to earnings from a rise in interest rates. Less attention, however, has been paid to the liability side of bank balance sheets. As a result, this could produce some surprises for investors in the months to come, especially given Fed officials have been again banging the drum about a rate increase coming this year. Years of superlow rates have encouraged complacency about the cost of funding. During the era of excess reserves, there was little reward for monitoring a bank's ability to attract low-cost deposit funding. If anything, banks faced criticism for having "too many" excess reserves. That is likely to change rapidly when the Fed begins to raise rates. Higher rates could drain deposits from banks, possibly into things like money-market funds or short-term debt. Thanks to new liquidity rules requiring banks to hold so-called high-quality liquid assets, any the deposit drain shouldn't be ruinous for large banks. But compliance with the liquidity rules doesn't mean all the big banks are equally well-equipped to deal with any big moves." It continues, "Banks that have more reserves than the deposits they lose should have the easiest time navigating the new environment.... But banks whose liquidity positions are more heavily reliant on U.S. Treasurys and mortgage-backed securities will find things more complicated. They may find themselves having to sell these bonds to finance deposit outflows or lend them out in the repurchase market. Preferably, they could also pay more for deposits in the wholesale market to stem the outflow. Regardless, this could mean tighter net interest margins and diminished profits. So which banks are best positioned? ... Credit Suisse analysts recently suggested comparing the reserve levels of banks to their nontransactional institutional deposits, a rough proxy for the kind of fast-money deposits that are likely to quickly leave banks. Of the four universal U.S. banks, only J.P. Morgan Chase has more reserves than fast-money deposits, according to Credit Suisse. Wells Fargo's reserves liquidity position amounts to nearly 60% of its fast-money deposits, putting it in the next-strongest place. Bank of America and Citigroup are in distant third and fourth places, with each holding reserves equivalent to one-third of their fast-money deposits.... The only thing certain is that banks will soon step into unexplored territory. The odds of one or more banks stumbling over new ground are high."
The Securities and Exchange Commission posted a "Notice to Form N-MFP Filers" that says, "The Form N-MFP technical specifications have been updated to incorporate the amendments to the form adopted by the Commission on July 23, 2014." Form N-MFP is the SEC's monthly Portfolio Holdings reporting form, which was initially mandated in November 2010 and modified with the 2014 Money Fund Reforms. Starting in April 2016, funds will have to alter their reporting on Form N-MFP, with the main changes being the removal of a 2-month lag and a tweaking of Portfolio Holdings categorizations. It explains, "Filers should be aware of the following: Filers should not make any Form N-MFP filings constructed using the updated technical specifications at this time. Filers will be able to submit test filings following EDGAR Release 15.4 later this year. For current N-MFP filings, filers should continue to construct submissions using the "EDGAR Form N-MFP XML Technical Specification (Version 3.1)." You can download the new specs here. For more, see our August 6, 2014, News, "SEC Money Fund Reform Disclosure Requirements Not Quite Kitchen Sink." We wrote then, "[T]he SEC included a host of enhanced disclosures and reporting requirements in its Money Fund Reform package.... The new rules ... will require funds to disclose daily on their web site daily and weekly assets, inflows/outflow, and market NAVs per share, as well as whether there has been any imposition of gates and fees, or any use of affiliate sponsor support. It will also remove the delay in disclosing monthly portfolio holdings via Form N-MFP, among other stipulations." In other news, CNBC reports, "Fed's Dudley: Fed will likely raise rates later this year." It says, "New York Federal Reserve Bank President William Dudley said on Monday the Fed remains on track for a likely rate hike this year and could reach its inflation target next year, faster than many other policymakers anticipate. Dudley said the first hike could come as soon as October as policymakers take stock of an improving economy. The Fed "will probably raise rates later this year," with the Oct. 27-28 session "live" for the rate hike debate, Dudley said at an event sponsored by the Wall Street Journal in New York. The Fed also meets in December."
Citi Research money market strategist Andrew Hollenhorst writes "Too Much Cash, Too Few T-Bills" in his latest "Short-End Notes." It says, "Following the Fed's decision not to raise rates last week, cash has poured back into US T-bills and the front-end of the curve, with yields 1bp or below out to March of 2016. In other words, interest rate derivatives curves are upward sloping to reflect the possibility of Fed hikes but pricing in the T-bill market is dominated by technical supply/demand factors. We expect the demand pressure and lack of supply to intensify over the next two months, keeping bill yields low. The next buying opportunity will likely not emerge until December. The Fed not hiking has increased front-end demand for at least three reasons: 1. Lower probability of rate hike.... 2. Less duration risk aversion [and] 3. Less need for foreign central banks to sell USD reserves." It continues, "The effect of the increased demand has been exacerbated by expectations of a projected $135 billion drop in T-bill supply over the next two months.... It remains Treasury's goal to keep its cash balance above $150bln. This is meant to provide enough "money in the bank" to cover government payment obligations if Treasury were unable to issue (for instance in the event of a natural disaster). Debt ceiling considerations have complicated these plans. Treasury is now cutting T-bill issuance to make room under the ceiling for upcoming planned coupon issuance. Also, Treasury's cash balance recently dipped below $100 billion and is likely to decline again as we approach the "hard" ceiling date. Cumulatively, we expect Treasury reduce bills outstanding by $135 billion ahead of the "hard" ceiling later this year. Our point estimate for the "hard" debt ceiling remains December 1st when Treasury will need to make significant recurring payments. However we note that government day-to-day cash needs are volatile and Treasury will likely push for Congress to raise or (more likely) suspend the debt ceiling ahead of this date. A new debt ceiling suspension may or may not be tied to a possible government shutdown which will occur on October 1st if Congress fails to approve a short-term spending plan or continuing resolution (CR).... The confluence of a drop in supply and increased demand led one month bills to trade at negative yields this week.... T-bills are likely to stay rich until a resolution of the debt ceiling which would allow Treasury to increase the supply of bills. This, together with constrained dealer balance sheet may create the next buying opportunity for bills in December."
Money market fund assets rose in the latest week, snapping a three-week slide, according to ICI's latest "Money Market Mutual Fund Assets" report. The release says, "Total money market fund assets increased by $13.96 billion to $2.66 trillion for the week ended Wednesday, September 23, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) increased by $5.36 billion and prime funds increased by $10.66 billion. Tax-exempt money market funds decreased by $2.05 billion. Assets of retail money market funds decreased by $1.65 billion to $897.19 billion. Among retail funds, Treasury money market fund assets increased by $230 million to $205.23 billion, prime money market fund assets decreased by $570 million to $512.91 billion, and tax-exempt fund assets decreased by $1.30 billion to $179.05 billion. Assets of institutional money market funds increased by $15.61 billion to $1.76 trillion. Among institutional funds, Treasury money market fund assets increased by $5.13 billion to $768.13 billion, prime money market fund assets increased by $11.23 billion to $928.73 billion, and tax-exempt fund assets decreased by $750 million to $66.30 billion." Year-to-date, money fund assets are down $73 billion, or 2.7%. Month-to-date in September (since 9/3), MMF assets are down $18 billion. In other news, Fed Chair Yellen said in a speech on "Inflation" yesterday, "By itself, the precise timing of the first increase in our target for the federal funds rate should have only minor implications for financial conditions and the general economy. What matters for overall financial conditions is the entire trajectory of short-term interest rates that is anticipated by markets and the public. As I noted, most of my colleagues and I anticipate that economic conditions are likely to warrant raising short-term interest rates at a quite gradual pace over the next few years. It's important to emphasize, however, that both the timing of the first rate increase and any subsequent adjustments to our federal funds rate target will depend on how developments in the economy influence the Committee's outlook for progress toward maximum employment and 2 percent inflation.... Given the highly uncertain nature of the outlook, one might ask: Why not hold off raising the federal funds rate until the economy has reached full employment and inflation is actually back at 2 percent? The difficulty with this strategy is that monetary policy affects real activity and inflation with a substantial lag. If the FOMC were to delay the start of the policy normalization process for too long, we would likely end up having to tighten policy relatively abruptly.... In addition, continuing to hold short-term interest rates near zero well after real activity has returned to normal and headwinds have faded could encourage excessive leverage and other forms of inappropriate risk-taking that might undermine financial stability. For these reasons, the more prudent strategy is to begin tightening in a timely fashion and at a gradual pace, adjusting policy as needed in light of incoming data."
The Wall Street Journal published a piece, "Yield of Zero? There's Record Demand for That." It says, "Amid fresh worries about the global economy, a $15 billion sale of U.S. government debt attracted record demand on Tuesday -- even though the securities, which will mature in a month, were sold with a yield of zero. The auction drew $9.47 bids for each dollar offered, surpassing the previous high from a December 2011 T-bill sale. Investors handed out free cash to the U.S. Treasury in exchange for a place to preserve capital. It was the third time from the past four sales with a zero auctioned yield. The result underscores the strong appeal of highly-liquid U.S. government debt, among the safest in the world amid growing anxiety over the global growth outlook and the timing of the Federal Reserve's first interest-rate increase since 2006. On Tuesday, investors flocked into assets seen as relatively safe -- Treasury bonds, German bunds and U.K. gilts -- as stocks, oil and emerging-market currencies sold off. "There is a lot of fear in the financial markets," said Jim Caron, global fixed income portfolio manager at Morgan Stanley Investment Management, which had $403 billion assets under management at the end of June. "The Fed is concerned about global growth, so investors should be concerned <b:>`_." It continues, "Demand for T-bills usually rises as the end of a quarter approaches.... Adding to demand for bills: the Treasury has been selling fewer of them lately as it has hit its "debt ceiling," and is waiting for the U.S. Congress to raise the cap later this year. Tuesday's four-week bill auction was $5 billion smaller than a week ago and the smallest since Feb 2014. "Treasury will have to continue to keep the sizes of the 4-week bills low over the next few weeks because of limited headroom under the debt limit," said Thomas Simons, money-market economist at Jefferies. In the meantime, demand remains robust from money-market funds which are mandated to invest in very short-term debt instruments. Tighter regulations are pushing many money market funds investing in short-term corporate debt instruments such as commercial paper into buying safer T-bills. Analysts said such demand is going to continue to keep yields on T-bills at very depressed levels even as the Fed appears to be close to raising short-term interest rates for the first time since 2006.... Tom Sontag, a money manager in Chicago at Neuberger Berman Group LLC which has $251 billion assets under management, said this dynamic means yields on T-bills could "decouple" from the Fed's rate-increase campaign. Mr. Sontag said he doesn't expect bill yields to rise a lot because higher yields would attract fresh buying interest, keeping a lid on the yields."
The Securities and Exchange Commission issued a release entitled, "SEC Proposes Liquidity Management Rules For Mutual Funds And ETFs," which doesn't apply to money market funds (they already have liquidity mandates) but is aimed primarily at bond funds. (Watch for more coverage in our next Bond Fund Intelligence.) It says, "The Securities and Exchange Commission today voted to propose a comprehensive package of rule reforms designed to enhance effective liquidity risk management by open-end funds, including mutual funds and exchange-traded funds (ETFs). "Promoting stronger liquidity risk management is essential to protecting the interests of the millions of Americans who invest in mutual funds and exchange-traded funds," said SEC Chair Mary Jo White. "These significant reforms would require funds to better manage their liquidity risks, give them new tools to meet that requirement, and enhance the Commission's oversight <b:>`_." Under the proposed reforms, mutual funds and ETFs would be required to implement liquidity risk management programs and enhance disclosure regarding fund liquidity and redemption practices. The proposal is designed to better ensure investors can redeem their shares and receive their assets in a timely manner. A fund's liquidity risk management program would be required to contain multiple elements, including: classification of the liquidity of fund portfolio assets based on the amount of time an asset would be able to be converted to cash without a market impact; assessment, periodic review and management of a fund's liquidity risk; establishment of a fund's three-day liquid asset minimum; and board approval and review. In addition, the proposal would codify the 15 percent limit on illiquid assets included in current Commission guidelines. The proposed reforms also would provide a framework under which mutual funds could elect to use "swing pricing" to effectively pass on the costs stemming from shareholder purchase or redemption activity to the shareholders associated with that activity. The swing pricing proposal would enable mutual funds, subject to board approval and oversight, to reflect in a fund's net asset value (NAV) costs associated with shareholders' trading activity. It is designed to protect existing shareholders from dilution associated with shareholder purchases and redemptions and would be an additional tool to help funds manage liquidity risks. The proposals will be published on the Commission’s website and in the Federal Register. The comment period for the proposed rules will be 90 days after publication in the Federal Register." The SEC also posted statements on the rule from all of the SEC commissioners, including SEC Chair Mary Jo White." ICI also released a "Statement on SEC Action on Liquidity Risk Management Programs for Mutual Funds" from its president, Paul Schott Stevens. Stevens says, "For 75 years, mutual funds have successfully managed liquidity and met redemptions under SEC rules and guidance. Based on the information available, today's proposal raises a number of complex issues for funds, their directors, and their investors. We look forward to engaging with the SEC to ensure that any final rules in this area are well-founded, practicable, and effective. We also commend Chair White and the Commission for their leadership in working to ensure that funds continue to manage liquidity and redemption risks successfully for years to come."
Schwab posted commentary called, "When Doves Cry ... Yeah! Fed Punts and Keeps Rates Unchanged." Author Liz Ann Sonders, Senior VP. Chief Investment Strategist, writes, "The Fed opted to stall on raising rates for the first time since 2006; primarily citing global turmoil and still-restrained inflation for its decision. In addition, the accompanying Federal Open Market Committee (FOMC) statement was not as hawkish as many expected (meaning, those who had been expecting no hike, were also expecting a more hawkish statement).... The main, not-so-hawkish sentence in the statement released by the Federal Open Market Committee: "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term." The blandness of that, in relation to its statements in the past, likely means some of the uncertainty around Fed policy will be with us at least until the next FOMC meeting in October." She also recapped the new "dot plot," "The median fed funds rate projection for year-end 2015 is now 0.375% instead of 0.625%. The median for year-end 2016 is now 1.375%, down from 1.625%. The median for year-end 2017 dropped to 2.625% from 2.875%. And the new median for year-end 2018 is 3.375%. The Fed also lowered its estimate for the longer-run normal fed funds rate to 3.5% from 3.75%." JP Morgan's Short Duration Strategy team stated in its "Short Duration Strategy Weekly," "Coming into this week we had envisioned three potential outcomes at the September FOMC meeting. The first was for the Fed to move the Fed funds target range 25bp higher, but to communicate a very cautious view on the pace of future hikes both through its statement and the SEP and dots. Although we wrote last week that the likelihood of a September hike was a coin flip, we saw this as most probable of our three scenarios. Our second most likely scenario was for the Fed to pass on the September liftoff, but for it to provide some sort of affirmation that it was ready to move soon. This kind of signaling could be viewed as preparing the markets the first hike in nine years. Obviously, neither of these were delivered by the FOMC. If we were looking for an affirmation of their intent, what we received was the opposite of affirmation. The FOMC presented us with something like our third scenario, which was no hike, no clarification on when we might get one and no indication of what might get the Committee to take action.... Adding to the confusion, the Committee seems to have introduced another set of goals in the form of expectations about the stability of international markets and the dollar."
Moody's issued a report, "US Prime Money Fund WAMs at Three-Year Low Ahead of Thursday's Fed Meeting." It says, "US prime money market fund (MMF) managers move aggressively to position their funds for an increase in US short-term interest rates. Average weighted average maturities (WAM) of Moody's-rated US dollar denominated prime funds (both domestic and offshore) fell to 30 days at the end of July, their lowest level in three years. Investments in overnight assets reaches its highest level in years. At 31 July 2015, 35.8% of prime MMF assets were invested in overnight securities. The benefit of higher liquidity will be twofold: first, MMFs are better positioned to manage a pick-up in redemptions following a rate hike, since MMF yields temporarily lag market yields on direct investments. Secondly, managers will further reduce interest rate risk by reinvesting faster at the new higher short-term rates. Sharp decline in prime MMF WAMs drives improvement in Moody's MMF NAV stress scores. Reduced sensitivity to interest rate changes combined with higher liquidity levels have resulted in the strongest stress NAV scores for Moody's-rated US dollar prime funds in a year, at approximately 0.9940. Market data for the week ended 11 September shows a slight uptick in US prime MMF WAMs. Following the elevated market volatility of the last several weeks, some managers may now be expecting the Fed to remain on hold in September, waiting until later in the year to begin its tightening cycle.... While euro funds maintained the 2015 lowest level of WAM in July, sterling prime funds' WAMs were 0.7 days lower on average in July than during Q2. The most recent market data shows that in August and beginning of September, WAMs of euro- and sterling- denominated prime funds are in line with those of July." In other news, Reuters posted a story, "No Champagne for Hard-Hit U.S. Money Funds as Fed Holds Rates." It says, "There will be no champagne corks popping in the $2.7 trillion U.S. money-market fund industry. The U.S. Federal Reserve kept interest rates unchanged on Thursday, meaning investors will continue to receive next-to-nothing yields on their money funds."
The Federal Reserve Board did not raise interest rates on Thursday, despite much speculation that it would. It cited concerns over inflation and “developments abroad.” The statement from the Federal Open Market Committee says, "To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress -- both realized and expected -- toward its objectives of maximum employment and 2 percent inflation. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term." In other news, the September swoon continues for money market mutual fund assets as they decreased for the third straight week, according to ICI's latest "Money Market Mutual Fund Assets" report. Once again, Treasury funds took a major hit, dropping $11 billion after falling $11 billion last week. The release says, "Total money market fund assets decreased by $16.23 billion to $2.65 trillion for the week ended Wednesday, September 16, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) decreased by $11.05 billion and prime funds decreased by $3.61 billion. Tax-exempt money market funds decreased by $1.56 billion. Assets of retail money market funds increased by $2.04 billion to $898.84 billion. Among retail funds, Treasury money market fund assets increased by $920 million to $205.00 billion, prime money market fund assets increased by $2.00 billion to $513.48 billion, and tax-exempt fund assets decreased by $890 million to $180.35 billion. Assets of institutional money market funds decreased by $18.26 billion to $1.75 trillion. Among institutional funds, Treasury money market fund assets decreased by $11.98 billion to $763.00 billion, prime money market fund assets decreased by $5.61 billion to $917.51 billion, and tax-exempt fund assets decreased by $670 million to $67.04 billion." Year-to-date, money fund assets are down $87 billion, or 3.2%. Month-to-date from September 3, MMF assets are down $32 billion.Archives »