Yields Inch Lower in Latest Week
Rates on money market funds fell in the latest week while brokerage sweep accounts remained flat. Our Money Fund Intelligence Daily shows that the flagship Crane 100 MF Index fell by two basis points to 1.44% in the 7 days through Friday, Jan. 10. The Crane 100 is down from 1.81% on Sept. 30 and down from 2.18% on June 30. The Crane 100 is down 77 bps from the beginning of 2019 (2.23%), but still up substantially from its near low of 0.06% ten years ago (12/31/09). The Crane Brokerage Sweep Index, which is currently 0.14%, is up 9 bps from ten years ago (0.05%) and down 14 bps from the end of 2018 (0.28%). Our latest Brokerage Sweep Intelligence, with data as of Friday, Jan. 10, shows every major brokerage keeping rates steady in the past week. Our broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data, shows a 7-day yield of 1.32%, down 2 bps in the week through Friday, Jan. 10. Treasury Inst MFs were down by 1 bps to 1.33%. Government Inst MMFs and Prime Inst MMFs were down 2 bps, finishing the week at 1.39% and 1.54%, respectively. Treasury Retail MFs currently yield 1.06%, (down 0.02%), Government Retail MFs yield 1.08% (down 1 bps) and Prime Retail MFs yield 1.38% (down 0.02%). Tax-exempt MF 7-day yields plummeted 0.34% to 0.69%, after jumping 20 bps two weeks ago. Crane's Brokerage Sweep Index remained flat at 0.14% in the week ended January 10 (for balances of $100K). No firms changed rates. E*Trade and TD Ameritrade currently have the lowest rate for balances at the $100K level (0.01%). Meanwhile, Fidelity continues to have the highest sweep rate (0.82%). (Fidelity also have a higher-yielding money fund option for new accounts.) Morgan Stanley is paying 0.03%. UBS, Merrill and Wells Fargo are all paying 0.05%, and Schwab is paying 0.06%. Raymond James and Ameriprise are paying 0.08%. RW Baird is paying 0.33% for balances of $100K.
