Money Fund Yields Flat at 4.18%
Money fund yields (7-day, annualized, simple, net) were down 1 bp at 4.18% on average during the week ended Friday, Feb. 7 (as measured by our Crane 100 Money Fund Index), after going up 1 bp the week prior and falling 1 bp three weeks prior. Fund yields have digested almost all of the Federal Reserve's 25 basis point cut from December 18, though they may inch down a basis point or 2 lower in coming days. They've declined by 88 bps since the Fed first cut its Fed funds target rate by 50 bps percent on Sept. 18, and they've declined by 45 bps since the Fed cut rates by 1/4 point on 11/7. Yields were 4.28% on average on 12/31/24, 4.45% on 11/30/24, 4.65% 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 679), shows a 7-day yield of 4.08%, down 1 bp in the week through Friday. Prime Inst money fund yields were down 2 bps at 4.28% in the latest week. Government Inst MFs were down 2 bps at 4.18%. Treasury Inst MFs were down 1 bp at 4.12%. Treasury Retail MFs currently yield 3.90%, Government Retail MFs yield 3.89%, and Prime Retail MFs yield 4.08%, Tax-exempt MF 7-day yields were down 30 bps at 1.89%. Assets of money market funds rose by $9.4 billion last week to $7.236 trillion, according to Crane Data's Money Fund Intelligence Daily. For the month of February, MMF assets have jumped by $9.4 billion, after increasing by $52.8 billion in January, $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 down 1 day at 37 days for the Crane MFA and unchanged at 38 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (2/7), 115 money funds (out of 791 total) yield under 3.0% with $137.2 billion in assets, or 1.9%; 192 funds yield between 3.00% and 3.99% ($456.2 billion, or 6.3%), 484 funds yield between 4.0% and 4.99% ($6.643 trillion, or 91.8%) 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 unchanged at 0.41%, after rising 1 bp three weeks prior. The latest Brokerage Sweep Intelligence, with data as of Feb. 7, shows no changes over the past week. 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.
