Crane Data Subscribers
Bloomberg.com: Treasury Bill Bull Market Driven by Money Funds. Treasuries are having their "biggest bull market for Treasury bills since the terrorist attacks on Sept. 11" says Bloomberg, writing, "Yields on three-month bills tumbled last week to a 16-month low of 4.53 percent" and "the unexpected surge in tax receipts may pare the budget deficit by 39 percent to $150 billion this fiscal year." It adds that the demand for 4-week, 3-month and 6-month bills is also being fed by money market funds. Government money fund portfolio managers Tim Huyck from Fidelity Investments, David Glocke from the Vanguard Group, and Karen Wiggan from Charles Schwab all are quoted in the piece, which discusses a dramatic shrinkage in Treasury supply and increasing demand from funds. Crane Data's Treasury Institutional Money Fund Index fell from 4.98% to 4.93% in May, and our Treasury Individual benchmark fell from 4.57% to 4.52%. Crane currently tracks approximately $191 billion in money funds which invest in Treasury bills and/or repurchase agreements backed by Treasuries.
