Wells Fargo Advantage Money Market Funds' latest monthly commentary says, "The money markets continued to be riveted by developments in the eurozone, as new risks -- both real and perceived -- seemed to pop up every day. We argued last month that despite the debt woes of some sovereign nations, the issue is that the prime money markets have gotten themselves caught in a negative feedback loop, where perceived problems are causing real ones. This will not be easy to escape, and the steady upward creep of rates and decreased volumes in longer-​term money market instruments seem to indicate that investors are increasingly risk-​averse. Meanwhile, supply and demand imbalances have led to persistent low rates in the U.​S. government sector, with yields often at, or below, zero. However, the municipal markets are relatively calm. After a high-​profile analyst'​s forecast for widespread defaults in the municipal markets this year proved to be pure folly, more investors, including prime money market funds, see the municipal sector as a safe haven in these troubled times."

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