Money Fund Yields Rise to 3.69%
Money fund yields (7-day, annualized, simple, net) rose 3 basis points to 3.69% on average during the week ended Friday, October 2 (as measured by our Crane 100 Money Fund Index), after increasing 9 bps the week prior. Money fund yields continued moving higher over the past 2 weeks as they digest the Federal Reserve's Sept. 16, 25 basis point rate increase. Fund yields should continue to inch higher in coming days as they absorb the remainder of the Fed's latest hike. Yields were 3.67% on 9/30/26, 3.51% on 8/31, 3.49% on 7/31, 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. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 727), shows a 7-day yield of 3.58%, up 2 bps in the week through Friday. Prime Inst money fund yields were up 1 bp at 3.81% in the latest week. Government Inst MFs were up 2 bps at 3.67%. Treasury Inst MFs were up 3 bps at 3.66%. Treasury Retail MFs currently yield 3.43%, Government Retail MFs yield 3.39% and Prime Retail MFs yield 3.58%, Tax-exempt MF 7-day yields were up 11 bps to 2.93%. Assets increased $40.3 billion in the week through Friday, and they've increased by $73.6 billion in October month-to-date (through 10/2). 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 $48.0 billion in September, increased $52.8 billion in August, but decreased $61.4 billion in July. They increased by $58.6 billion in June and $208.6 billion in May, but decreased by $108.8 billion in April and $49.3 billion in March. Weighted average maturities were at 36 days for the Crane MFA and 37 days the Crane 100 Money Fund Index. The latest Brokerage Sweep Intelligence, with data as of October 2, shows one change over the past week, Raymond James raised rates for all accounts of $1K to $249K to 0.05%, accounts of $250K to $499K to 0.10%, accounts of $500K to $999K to 0.12%, accounts of $1 million to $4.9 million to 1.15% and accounts of $10 million and greater to 1.75%. 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.
