Money Fund Yields Flat Again at 5.17%
Money fund yields remain unchanged this past week at 5.17%, after falling 1 bp the week prior, as measured by our Crane 100 Money Fund Index for the week ended Friday, 10/13. The Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. We expect yields to remain flat in coming days as MMFs have finished digesting the Fed's (last) July 26th 25 basis point hike. Yields were 5.16% on 8/31, 5.09% on July 31, 4.94% on June 30, 4.61% on March 31 and 4.05% on 12/31/22. The vast majority of money market fund assets now yield 5.0% or higher. Assets of money market funds fell by $93.0 billion last week to $5.985 trillion according to Crane Data's Money Fund Intelligence Daily, and they have fallen by $87.9 billion since the start of October (after rising $93.9 billion in September). Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 681), shows a 7-day yield of 5.07%, unchanged in the week through Friday. Prime Inst MFs were unchanged at 5.27% in the latest week. Government Inst MFs were up 1 bp at 5.14%. Treasury Inst MFs up 1 bp for the week at 5.12%. Treasury Retail MFs currently yield 4.89%, Government Retail MFs yield 4.85%, and Prime Retail MFs yield 5.09%, Tax-exempt MF 7-day yields were down 27 bps to 2.85%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (10/13), 75 money funds (out of 808 total) yield under 3.0% with $38.2 billion in assets, or 0.6%; 55 funds yield between 3.00% and 3.99% ($88.1 billion, or 1.5%), 216 funds yield between 4.0% and 4.99% ($942.0 billion, or 15.7%) and 462 funds now yield 5.0% or more ($4.917 trillion, or 82.2%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.62%. The latest Brokerage Sweep Intelligence, with data as of Oct. 13, shows that there were no changes over the past week. Three of the 11 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
