Crane 100 MF Index Lower to 4.10%
Money fund yields (7-day, annualized, simple, net) were down 1 bp at 4.10% on average during the week ended Friday, September 5 (as measured by our Crane 100 Money Fund Index), after remaining unchanged the week prior. Fund yields should stay relatively flat until after the Fed cuts rates on September 17. 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 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 677), shows a 7-day yield of 3.99%, down 1 bp in the week through Friday. Prime Inst money fund yields down 1 bp at 4.23% in the latest week. Government Inst MFs were unchanged at 4.11%. Treasury Inst MFs were down 1 bp at 4.03%. Treasury Retail MFs currently yield 3.79%, Government Retail MFs yield 3.81%, and Prime Retail MFs yield 4.02%, Tax-exempt MF 7-day yields were down 13 bps to 2.42%. Assets of money market funds rose by $50.2 billion last week to $7.653 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.663 trillion (on September 4) after their previous high of $7.633 trillion set on September 2. For the month of September (MTD), MMF assets have increased $50.2 billion after increasing by $132.0 billion in August, $63.7 billion in July, $6.7 billion in June, $100.9 billion in May, 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, and $97.5 billion in October. Weighted average maturities were at 42 days for the Crane MFA and 42 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (9/5), 116 money funds (out of 789 total) yield under 3.0% with $143.8 billion in assets, or 1.9%; 266 funds yield between 3.00% and 3.99% ($1.339 trillion, or 17.5%), 407 funds yield between 4.0% and 4.99% ($6.170 trillion, or 80.6%) 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 unchanged at 0.40%, after falling 1 bp sixteen weeks prior. The latest Brokerage Sweep Intelligence, with data as of September 5, 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.
