Money Fund Yields Inch Down to 3.58%
Money fund yields (7-day, annualized, simple, net) decreased by 8 bps to 3.58% on average during the week ended Friday, December 19 (as measured by our Crane 100 Money Fund Index), after decreasing 9 bps the week prior. Fund yields should move lower in coming days as they digest the remainder of the Fed's Dec. 10 25 bps rate cut. Yields were 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 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 679), shows a 7-day yield of 3.49%, down 8 bps in the week through Friday. Prime Inst money fund yields were down 10 bps at 3.67% in the latest week. Government Inst MFs were down 8 bps at 3.60%. Treasury Inst MFs were down 6 bps at 3.55%. Treasury Retail MFs currently yield 3.32%, Government Retail MFs yield 3.29% and Prime Retail MFs yield 3.47%, Tax-exempt MF 7-day yields were up 44 bps to 2.69%. Assets of money market funds fell by $47.4 billion last week to $8.009 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $8.066 trillion on December 11. Month-to-date in December (through 12/19), MMF assets have increased $26.9 billion, after increasing by $132.8 billion in November, $142.1 billion in October, $105.2 billion in September, $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 and $110.9 billion last December. Weighted average maturities were at 39 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (12/19), 138 money funds (out of 789 total) yield under 3.0% with $146.8 billion in assets, or 1.8%; 643 funds yield between 3.00% and 3.99% ($7.818 trillion, or 97.6%), 8 funds yield between 4.0% and 4.99% ($44.9 billion, or 0.6%) 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 1 bp at 0.30% <b:>`_, after falling 1 basis point the week prior. The latest Brokerage Sweep Intelligence, with data as of December 19, shows two changes over the past week. RW Baird lowered rates for accounts of $1K to $999K to 0.98%, to 1.55% for accounts of $1 million to $1.9 million and to 2.02% for accounts of $5 million and greater. UBS lowered rates for accounts of $1K to $499K to 0.03% and to 0.1% for accounts of $4 million to $9.9 million. Three of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
