It's been almost 2 weeks since the Federal Reserve raised its Federal funds rate by another 50 basis points, and money market fund yields continue to climb higher after a big jump last week. While they've yet to reflect the full 50 basis point increase (and may not entirely due to the last of the fee waivers being reduced), yields have risen noticeably since the March 16 25 bps hike and the May 4 50 bps hike. Our flagship Crane 100 Money Fund Index started March 2022 at 0.02% (where is had been pinned for 2 years), rose to 0.13% the week following the March hike, and has jumped to 0.52% as of Friday, 5/13. Brokerage sweep rates have also started to move. Our latest Brokerage Sweep Intelligence shows most brokerages still paying 0.01% yields (on FDIC insured deposits), but several brokerages raised rates this week. We review the latest money fund and brokerage sweep yields below. (Note: Thanks to those who participated in SIFMA's AMA Roundtable in Phoenix! We hope to see you again next month at our Money Fund Symposium in Minneapolis, June 20-22.)

The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 674), shows a 7-day yield of 0.41%, up 16 basis points in the week through Friday. The Crane Money Fund Average is up 31 bps from 0.10% at the beginning of April. Prime Inst MFs were up 22 bps to 0.59% in the latest week, and up 35 bps over the course of May. Government Inst MFs rose by 18 bps to 0.48%, they are up 31 bps MTD. Treasury Inst MFs rose by 14 bps to 0.42%, and were up 23 bps in May. Treasury Retail MFs currently yield 0.22%, (up 9 bps for the week, and up 16 bps in May), Government Retail MFs yield 0.21% (up 10 bps for the week, and up 17 bps in May), and Prime Retail MFs yield 0.42% (up 18 bps for the week, and up 28 bps for May), Tax-exempt MF 7-day yields rose by 14 bps to 0.32%, they were up 18 bps in May.

Our Crane Brokerage Sweep Index, the average rate for brokerage sweep clients (all of which are swept into FDIC insured accounts), inched higher to 0.02%, following 2 straight years stuck at 0.01%. It had been at 0.12% at the end of 2019 and at 0.28% at the end of 2018. The latest Brokerage Sweep Intelligence, with data as of May 13, shows several rate changes over the past week (with 2 changes the week prior).

Among brokerage rates, Fidelity hiked its FCash brokerage account rates to 0.25% across all tiers, according to our Brokerage Sweep Intelligence publication. (Rates on its default sweep Cash Management Account remain at 0.01%.) Raymond James increased rates from 0.01% to 0.02% for balances under $25K, to 0.03% for balances under $100K, to 0.05% for balances under $500K and to 0.08% for balances $500K to $2.5 million. RW Baird increased its sweep rates from 0.03% to 0.10%. All of the other major brokerages still offer rates of 0.01% for balances of $100K (and most other tiers). These include: Ameriprise, E*Trade, Merrill Lynch, Morgan Stanley, Schwab, TD Ameritrade, and UBS. (Wells moved its rates to 0.02% last week.)

According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/13), just 93 funds (out of 821 total) yielded 0.00% or 0.01% with total assets of $81.2 billion, or 1.6% of total assets. (This compares to 593 funds with $2.623 trillion at the beginning of the year.) There were 48 funds yielding between 0.02% and 0.09%, totaling $52.5B, or 1.1% of assets; 61 funds yielded between 0.10% and 0.19% with $42.8 billion, or 0.9% of assets; 321 funds yielded between 0.20% and 0.49% with $1.755 trillion in assets, or 35.6%; 281 funds yielded between 0.50% and 0.79% with $2.710 trillion in assets, or 54.9%; and just 17 funds yielded 0.80% or higher with $295.0 billion in assets or 6.0%; no funds yielded over 0.93% (yet).

In other news, ICI released its latest monthly "Money Market Fund Holdings" summary, which reviews the aggregate daily and weekly liquid assets, regional exposure, and maturities (WAM and WAL) for Prime and Government money market funds.

The MMF Holdings release says, "The Investment Company Institute (ICI) reports that, as of the final Friday in April, prime money market funds held 30.4 percent of their portfolios in daily liquid assets and 50.8 percent in weekly liquid assets, while government money market funds held 87.7 percent of their portfolios in daily liquid assets and 94.6 percent in weekly liquid assets." Prime DLA was up from 30.0% in March, and Prime WLA was up from 49.0%. Govt MMFs' DLA increased from 85.9% in March and Govt WLA increased from 92.2% the previous month.

ICI explains, "At the end of April, prime funds had a weighted average maturity (WAM) of 19 days and a weighted average life (WAL) of 57 days. Average WAMs and WALs are asset-weighted. Government money market funds had a WAM 29 days and a WAL of 74 days." Prime WAMs were three days shorter than March, while WALs were one day longer from the previous month. Govt WAMs were one day shorter and WALs were three days shorter than March, respectively.

Regarding Holdings by Region of Issuer, the release tells us, "Prime money market funds’ holdings attributable to the Americas declined from $193.01 billion in March to $150.61 billion in April. Government money market funds' holdings attributable to the Americas declined from $3,772.27 billion in March to $3,694.66 billion in April."

The Prime Money Market Funds by Region of Issuer table shows Americas-related holdings at $150.6 billion, or 36.8%; Asia and Pacific at $79.7 billion, or 19.5%; Europe at $175.1billion, or 42.8%; and, Other (including Supranational) at $4.0 billion, or 0.9%. The Government Money Market Funds by Region of Issuer table shows Americas at $3.695 trillion, or 92.0%; Asia and Pacific at $106.9 billion, or 2.7%; Europe at $188.8 billion, 4.7%, and Other (Including Supranational) at $25.8 billion, or 0.6%.

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