Crane Data Subscribers
ICI reported weekly money market mutual fund assets, which showed a decline of $22.9 billion to $2.397 trillion. The drop, almost entirely institutional (-$21.2 billion), should be temporary though. The week ended on month end (2/28) when funds always see big outflows due to payrolls, bills, and window-dressing. Cash was also drawn out of funds and into overnight repo due to an unusually high Fed funds rate Wednesday. (It was 5.41% according to Wrightson ICAP.) Expect assets to rebound briskly next week as flight-to-safety money and beginning of month dividends appear.
