Money fund yields (7-day, annualized, simple, net) were up 1 basis point to 3.50% on average during the week ended Friday, August 28 (as measured by our Crane 100 Money Fund Index), after being unchanged the week prior. Fund yields should remain flat in coming days (and weeks) unless and until the Fed moves rates higher. Yields were 3.49% on 7/31/26, 3.47% on 6/30 and on 3/31, 3.58% on 12/31/25, 4.13% on 6/30/25 and 4.28% on average on 12/31/24. MMFs averaged 5.20% on 12/31/23. (Note: We're still taking registrations for our European Money Fund Symposium, which is in just over 3 weeks -- Sept. 24-25, 2026 in Paris, France! We hope to see you there!)
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 725), shows a 7-day yield of 3.41%, up 1 bp in the week through Friday. Prime Inst money fund yields were up 1 bp at 3.61% in the latest week. Government Inst MFs were up 1 bp at 3.50%. Treasury Inst MFs were unchanged at 3.48%. Treasury Retail MFs currently yield 3.25%, Government Retail MFs yield 3.22% and Prime Retail MFs yield 3.39%, Tax-exempt MF 7-day yields were down 3 bps to 2.03%.
Assets increased $12.4 billion in the week through Friday, and they've increased by $75.4 billion in August month-to-date (through 8/28). But assets remain below their all-time record high of $8.404 trillion hit on July 6, according to our Money Fund Intelligence Daily. MMF assets decreased by $61.4 billion in July, increased by $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion last August.
Weighted average maturities were at 39 days for the Crane MFA and 39 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (8/28), just 159 money funds (out of 836 total) yield under 3.0% with $190.4 billion in assets, or 2.3%, while the vast majority (677) of funds yield between 3.00% and 3.99% ($8.174 trillion, or 97.7%). No funds yield over 4.0%.
Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp fourteen weeks prior. The latest Brokerage Sweep Intelligence, with data as of August 28, shows no changes over the past week. Four 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, Morgan Stanley and Schwab.
In other news, Silicon Valley Bank (SVB) published a "`Fixed Income Strategy" piece titled, "Options for Excess Cash: Balancing Liquidity, Risk and Yield." They write, "Some investors may be fretting about inflation data and a Federal Reserve that is signaling a more restrictive monetary policy stance. Certainly, that's how the US Treasury curve has interpreted the situation. However, the flip side is that the current environment now offers investors the potential to capture more attractive yields in a variety of ways. As interest rates remain elevated relative to the past decade, treasury teams are reevaluating how they manage excess cash. Which path is right for you? Let’s take a closer look at some of today's viable options."
The piece continues, "While preserving principal and maintaining liquidity remain paramount, many organizations are asking whether they can generate additional income without taking undue risk. Thus, understanding the differences between government money market funds, short-duration bond funds and SMAs can help organizations align their cash investment strategy with their liquidity needs and risk tolerance. In our experience, companies in the innovation economy are taking a closer look at what to do with excess cash in a business environment -- specifically, how to generate income without compromising the liquidity their operations require. The key challenge for many of these organizations is balancing uncertain operating timelines with the desire to earn additional income on strategic cash reserves."
It tells us, "The primary distinction among these investment options is the trade-off between liquidity, principal stability and income potential. Finding that sweet spot is key. As investors move from government money market funds toward SMAs and short-duration bond funds, the opportunity for additional income generally increases along with interest rate risk, credit risk and liquidity risk. A useful way to understand this trade-off is through net asset value (NAV), which represents the market value of a fund's holdings on a per-share basis."
SVB states, "For organizations weighing where to put excess cash, the answer depends on the intended purpose and time horizon of each cash tranche. So how do you determine which option best fits your needs? In general, government money market funds are great options for immediate cash needs, such as near-term payroll or one- to six-month operating cash needs. The primary goals are capital preservation, immediate liquidity and safety. They function as a cash management tool and are appropriate when funds may be needed in the near term."
They explain, "SMAs are often most appropriate for reserve cash that is not needed immediately but still requires a defined liquidity profile. By tailoring maturity limits, credit parameters and sector exposure with an SMA, organizations can seek incremental income while maintaining investment guidelines that align with their operational requirements. Cash expected to remain invested for six to 12 months may be invested differently than funds needed for near-term operations, potentially helping organizations earn additional income while maintaining appropriate liquidity."
The article adds, "Short-duration bond funds may be better suited if it's more important to capture potentially higher income while accepting a moderate level of interest rate and credit risk. This option can provide an effective balance between stability and return but with a longer investment horizon, usually 18+ months. In all likelihood, this would be better known as strategic cash or cash for longer-term deployment, as opposed to an immediate need such as covering payroll."
