WSJ "European Funds Lock the Doors"
WSJ: writes "European Funds Lock the Doors". It says, "The European Central Bank's decision to drop short-term interest rates to record lows is rippling through financial markets, driving down the euro and forcing money funds across the region to close to new investors." See also, ICI's latest "Money Market Mutual Fund Assets" shows money fund assets rebounding in the latest week. The release says, "Total money market mutual fund assets increased by $18.56 billion to $2.551 trillion for the week ended Wednesday, July 11, the Investment Company Institute reported today. Taxable government funds decreased by $790 million, taxable non-government funds increased by $19.57 billion, and tax-exempt funds decreased by $220 million." Finally, see too, Treasury Today's "MMFs face some harsh realities", which says, "When the ECB cut its main rates by a quarter of a percentage point to below 1% last Thursday, the central bank also lowered the deposit rate from 0.25% to zero, resulting in a significant reduction in yields in the European money markets. Fund providers who monitor these markets daily make -- sometimes severe -- decisions based upon what they deem best for their shareholders."
