Crane 100 MF Index Lower to 4.19%
Money fund yields (7-day, annualized, simple, net) fell by 6 basis point to 4.19% on average during the week ended Friday, Jan. 10 (as measured by our Crane 100 Money Fund Index), after falling 2 bps the week prior and 7 bps two weeks prior. Fund yields have digested almost all of the Federal Reserve's 25 basis point cut from December 18, though they may inch a touch lower in coming days. They've declined by 87 bps since the Fed first cut its Fed funds target rate by 50 bps percent on Sept. 18, and they've declined by 44 bps since the Fed cut rates by 1/4 point on 11/7. Yields were 4.45% on 11/30, 4.65% on average on 10/31, 4.75% on 9/30, 5.10% on 8/31, 5.13% on 7/31 and 6/28, 5.14% on 3/31 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 678), shows a 7-day yield of 4.10%, down 7 bps in the week through Friday. Prime Inst money fund yields were down 5 bps at 4.30% in the latest week. Government Inst MFs were down 9 bps at 4.19%. Treasury Inst MFs were down 5 bps at 4.15%. Treasury Retail MFs currently yield 3.94%, Government Retail MFs yield 3.90%, and Prime Retail MFs yield 4.09%, Tax-exempt MF 7-day yields were down 100 bps to 1.80%. Assets of money market funds fell by $17.9 billion last week to $7.230 trillion, according to Crane Data's Money Fund Intelligence Daily. For the month of January, MMF assets have jumped by $56.1 billion, after increasing by $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were up 1 day at 38 days for the Crane MFA and up 1 day at 38 days for the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/10), 115 money funds (out of 790 total) yield under 3.0% with $143.9 billion in assets, or 2.0%; 169 funds yield between 3.00% and 3.99% ($392.6 billion, or 5.4%), 506 funds yield between 4.0% and 4.99% ($6.693 trillion, or 92.6%) 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 3 bps to 0.40%, after dropping 1 bp the week prior. The latest Brokerage Sweep Intelligence, with data as of Jan. 10, shows three changes over the past week. Ameriprise lowered rates to 0.15% for accounts between $1 and $249K, to 0.30% for accounts of $250K to $499K, to 0.60% for accounts of $500K to $999K, and to 1.59% for accounts of $1M to $4.9M for their Ameriprise Insured Money Mkt Acct. Ameriprise Cash rates were also lowered to 0.15% for all accounts. Merrill Lynch lowered their Advisory rates to 4.21% for all accounts. Raymond James lowered rates to 0.15% for accounts between $1 and $249K, to 0.35% for accounts of $250K to $999K, to 1.55% for accounts of $1M to $4.9M, and to 2.25% for accounts of $10M or more. 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.
