Yields Flat; Sweep Avg Up on TD Exit
Money fund yields were unchanged at 5.12% on average (as measured by our Crane 100 Money Fund Index) in the week ended May 17, after being down 1 bp the week prior. Our Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. Yields were 5.13% on 4/30, 5.14% on 3/31 and 2/29/24, 5.17% on 1/31/24, 5.20% on 12/31/23, 4.94% on 6/30/23, 4.61% on 3/31/23 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 rose by $23.8 billion last week to $6.446 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 714), shows a 7-day yield of 5.03%, unchanged in the week through Friday. Prime Inst MFs were unchanged at 5.20% in the latest week. Government Inst MFs were unchanged at 5.10%. Treasury Inst MFs were up 1 bp at 5.07%. Treasury Retail MFs currently yield 4.85%, Government Retail MFs yield 4.83%, and Prime Retail MFs yield 5.03%, Tax-exempt MF 7-day yields were up 34 bps at 3.33%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/17), 13 money funds (out of 835 total) yield under 3.0% with $399 million in assets, or 0.0%; 112 funds yield between 3.00% and 3.99% ($134.6 billion, or 2.1%), 250 funds yield between 4.0% and 4.99% ($1.323 trillion, or 20.5%) and 460 funds now yield 5.0% or more ($4.988 trillion, or 77.4%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was up 2 bps at 0.63%. The latest Brokerage Sweep Intelligence, with data as of May 17, shows that there were no changes over the past week, but the removal of TD Ameritrade from the listings pushed the averages higher. Three of the 10 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. (Note: We removed rates from TD Ameritrade in this week's file since it completed its merger with Charles Schwab. For more, see Schwab Statement Regarding Final Ameritrade Transition Group, which says, "The Charles Schwab Corporation has completed its fifth and final round of client account transitions associated with the acquisition of Ameritrade, marking the completion of a historic integration.)
