Money Fund Average Dips to 4.10%
Money fund yields (7-day, annualized, simple, net) declined by one basis point to 4.10% on average during the week ended Friday, May 23 (as measured by our Crane 100 Money Fund Index), after remaining unchanged the previous week. Fund yields should stay relatively flat until the Fed moves rates again later this year. They've declined by 96 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 53 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.14% on 3/31/25, 4.16% on 2/28/25, 4.19% on 1/31/25, 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 682), shows a 7-day yield of 4.01%, unchanged in the week through Friday. Prime Inst money fund yields were down 1 bp at 4.24% in the latest week. Government Inst MFs were unchanged at 4.11%. Treasury Inst MFs were down 1 bp at 4.06%. Treasury Retail MFs currently yield 3.83%, Government Retail MFs yield 3.81%, and Prime Retail MFs yield 4.00%, Tax-exempt MF 7-day yields were up 14 bps to 2.51%. Assets of money market funds fell by $10.3 billion last week to $7.314 trillion, according to Crane Data's Money Fund Intelligence Daily. For the month of May (MTD), MMF assets have increased by $15.2 billion, after decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $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 at 37 days for the Crane MFA and 38 days the Crane 100 Money Fund Index. According to Tuesday's Money Fund Intelligence Daily, with data as of Friday (5/23), 115 money funds (out of 794 total) yield under 3.0% with $143.7 billion in assets, or 2.0%; 257 funds yield between 3.00% and 3.99% ($1.312 trillion, or 17.9%), 422 funds yield between 4.0% and 4.99% ($5.859 trillion, or 80.1%) 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 0.40%, after falling 1 bp the previous week. The latest Brokerage Sweep Intelligence, with data as of May 23, 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.
