The Wall Street Journal writes "Money Funds Buck Euro-Zone Retreat". It says, "At a time when many money-market mutual funds are piling out of Europe, some are looking for more of it in their quest for higher returns. Eight of the 20 money funds with the most exposure to Europe, as measured by total assets at the end of May, increased their euro-zone holdings between last August and May 31, according to iMoneyNet, a research firm in Westborough, Mass. Managers of the eight money-market mutual funds that ramped up their European holdings include BlackRock Inc. and Goldman Sachs Group Inc.. Officials at such funds insist they aren't taking bigger risks, noting their heightened exposure to Europe is coming through short-term "repurchase agreements" issued by European banks.... Yields on repos backed by Treasurys have jumped to an annualized 0.17%, up from 0.11% in August, according to the Depository Trust & Clearing Corp., a securities clearinghouse. In contrast, the average annualized yield on money funds has shriveled to 0.06%, down from 5% in mid-2007, says researcher Crane Data LLC."

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