MMF Yields Tie Record Lows of 2013

Nov 24 20

Money market fund yields hit record lows in the latest week -- our flagship Crane 100 declined by one basis point to 0.02%, tying the all-time record low levels of 2013-2014. The Crane 100 Money Fund Index fell below the 1.0% level in mid-March and below the 0.5% level in late March. It is down from 1.46% at the start of the year and down from 2.23% at the beginning of 2019. Almost three-quarters of all money funds and over a half of MMF assets have since landed on the zero yield floor, though many continue to show some yield. According to our Money Fund Intelligence Daily, as of Friday, 11/20, 618 funds (out of 853 total) yield 0.00% or 0.01% with assets of $2.399 trillion, or 51.2% of the total. There are 207 funds yielding between 0.02% and 0.10%, totaling $1.889 trillion, or 40.3% of assets; 28 funds yielded between 0.11% and 0.25% with $400.7 billion, or 8.5% of assets. No funds yield over 0.23%. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 673), shows a 7-day yield of 0.02%, unchanged in the week through Friday, 11/20. The Crane Money Fund Average is down 45 bps from 0.47% at the beginning of April. Prime Inst MFs were flat at 0.05% in the latest week and Government Inst MFs were also flat at 0.02%. Treasury Inst MFs were unchanged at 0.02%. Treasury Retail MFs currently yield 0.01%, (unchanged in the last week), Government Retail MFs yield 0.01% (unchanged), and Prime Retail MFs yield 0.03% (unchanged), Tax-exempt MF 7-day yields were also unchanged at 0.01%. (Let us know if you'd like to see our latest MFI Daily.) Our Crane Brokerage Sweep Index, which hit the zero floor seven and a half months ago, remains at 0.01%. The latest Brokerage Sweep Intelligence, with data as of November 20, showed no changes. RW Baird offers a rate of 0.02% for its 100K tier, all other major brokerages 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 31 weeks at 0.01% (for balances of $100K). Ameriprise, E*Trade, Fidelity, Merrill Lynch, Morgan Stanley, Raymond James, 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).

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