Crane 100 MF Index Dips to 0.13%
Money market fund yields continue to bottom out in the latest week, with our Crane 100 Money Fund Index inching down a basis point to 0.13%. The Crane 100 fell below the 1.0% level in mid-March and below the 0.5% level in late March, and is down from 1.46% at the start of the year and down from 2.23% at the beginning of 2019. Almost half of all money funds and over one quarter of MMF assets have already hit the zero floor, though many continue to show some yield. According to our Money Fund Intelligence Daily, as of Friday, 6/5, 432 funds (out of 852 total) yield 0.00% or 0.01% with assets of $1.393 trillion, or 27.4% of the total. There are 181 funds yielding between 0.02% and 0.10%, totaling $1.432 trillion, or 28.1% of assets; 132 funds yielded between 0.11% and 0.25% with $1.372 trillion, or 26.9% of assets; 92 funds yielded between 0.26% and 0.50% with $658.3 billion in assets, or 12.9%; and just 10 funds yield between 0.51% and 0.99% with $236.6 billion in assets or 4.6% (no funds yield over 1.00%). The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 674), shows a 7-day yield of 0.10%, down a basis point in the week through Friday, 6/5. The Crane Money Fund Average is down 37 bps from 0.47% at the beginning of April. Prime Inst MFs were down 3 bps to 0.25% in the latest week and Government Inst MFs were flat at 0.08%. Treasury Inst MFs dropped by 1 basis point to 0.06%. Treasury Retail MFs currently yield 0.01%, (unchanged in the last week), Government Retail MFs yield 0.03% (flat in the last week), and Prime Retail MFs yield 0.16% (down 2 bps for the week), Tax-exempt MF 7-day yields dropped by 1 basis point to 0.04%. (Let us know if you'd like to see our latest MFI Daily.) Our Crane Brokerage Sweep Index, which hit the zero floor two months ago, remains at 0.01%. The latest Brokerage Sweep Intelligence, with data as of June 5, shows no changes in the last week. All of the major brokerages now offer rates of 0.01% for balances of $100K. No brokerage sweep rates or money fund yields have gone negative to date, but this could become a distinct possibility in coming weeks or months. Crane's Brokerage Sweep Index has been flat for the last eight weeks at 0.01% (for balances of $100K). Ameriprise, E*Trade, Fidelity, Merrill Lynch, Morgan Stanley, Raymond James, RW Baird, Schwab, TD Ameritrade, UBS and Wells Fargo all currently have rates of 0.01% for balances at the $100K tier level (and almost every other tier too). Monday's MFI Daily, with data as of June 5, shows Prime assets continuing their rebound with $13.6 billion of inflows, increasing their asset total to $1.119 trillion in the latest week. Government assets again experienced outflows decreasing by $45.1B to $3.834 trillion. Tax-Exempt MMFs increased $391 million. Month-to-date money fund assets have fallen $31.1 billion. Prime assets are up $13.6 billion MTD, while Government assets are down by $45.1 billion. Tax-Exempt MMFs increased by $391 million.
