Yields Up to 5.14%; Sweep Still 0.63%
Money fund yields were up 1 bp at 5.14% on average (as measured by our Crane 100 Money Fund Index) in the week ended May 31, after rising 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 $39.3 billion last week to $6.473 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 713), shows a 7-day yield of 5.04%, up 1 bp in the week through Friday. Prime Inst MFs were up 1 bp at 5.21% in the latest week. Government Inst MFs were up 1 bp at 5.12%. Treasury Inst MFs were up 1 bp at 5.08%. Treasury Retail MFs currently yield 4.86%, Government Retail MFs yield 4.84%, and Prime Retail MFs yield 5.03%, Tax-exempt MF 7-day yields were down 13 bps at 3.14%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/31), 24 money funds (out of 834 total) yield under 3.0% with $1.7 billion in assets, or 0.0%; 100 funds yield between 3.00% and 3.99% ($133.9 billion, or 2.1%), 246 funds yield between 4.0% and 4.99% ($1.320 trillion, or 20.4%) and 464 funds now yield 5.0% or more ($5.018 trillion, or 77.5%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.63%. The latest Brokerage Sweep Intelligence, with data as of May 31, shows that there were no changes over the past week, two weeks prior we saw the removal of TD Ameritrade from the listings pushed the averages higher (2 bps). 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: Three weeks ago we removed rates for TD Ameritrade from BSI since it completed its merger with Charles Schwab.)
