Crane 100 MF Index Stays at 4.17%
Money fund yields (7-day, annualized, simple, net) were down 1 bp at 4.17% on average during the week ended Friday, Feb. 14 (as measured by our Crane 100 Money Fund Index), after falling 1 bp the week prior and going up 1 bp 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 down a basis point or 2 lower in coming days. They've declined by 89 bps since the Fed first cut its Fed funds target rate by 50 bps percent on Sept. 18, and they've declined by 46 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 4.06%, down 2 bps in the week through Friday. Prime Inst money fund yields were down 1 bp at 4.28% in the latest week. Government Inst MFs were down 2 bps at 4.17%. Treasury Inst MFs were down 1 bp at 4.11%. Treasury Retail MFs currently yield 3.88%, Government Retail MFs yield 3.86%, and Prime Retail MFs yield 4.06%, Tax-exempt MF 7-day yields were up 64 bps at 2.54%. Assets of money market funds fell by $29.2 billion last week to $7.213 trillion, according to Crane Data's Money Fund Intelligence Daily. For the month of February, MMF assets have fallen by $14.0 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 unchanged at 37 days for the Crane MFA and 1 day longer at 39 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (2/14), 107 money funds (out of 791 total) yield under 3.0% with $111.4 billion in assets, or 1.5%; 222 funds yield between 3.00% and 3.99% ($800.0 billion, or 11.1%), 462 funds yield between 4.0% and 4.99% ($6.301 trillion, or 87.4%) 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 four weeks prior. The latest Brokerage Sweep Intelligence, with data as of Feb. 14, 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.
