Reuters writes "J.P. Morgan sees US Treasury fund assets shrinking", saying, "The Federal Reserve's near zero percent interest rate policy has resulted in a massive withdrawal from money market funds that invest only in safe but low-yielding U.S. government securities, J.P. Morgan Securities said on Monday." The article adds, "J.P. Morgan analysts predicted assets in Treasury-only money market funds could shrink 50 percent by the end of 2009 from its peak of about $760 billion in December." Crane Data's Money Fund Intelligence Daily shows Treasury money funds declining $86.3 billion since their peak of $695 billion on Dec. 8, 2008. Government funds increased by $93.5 billion and Prime funds increased by $108.7 billion over this 6 week period. Also, see Investment News' "Schwab waives fees on Treasury fund".
