Crane MF Index Jumps to 2.34%
Money fund yields jumped higher again -- our Crane 100 Money Fund Index (7-Day Yield) rose 24 basis points to 2.34% in the week ended Friday, 9/23. Yields rose by 5 basis points the previous week, 3 bps the week before that, and 3 basis points the week before that. On average, they're up from 1.57% on July 29, up from 1.18% on June 30 and more than triple their level of 0.58% on May 31. MMF yields are up from 0.21% on April 29, 0.15% on March 31 and 0.02% on February 28 (where they'd been for almost 2 years prior). Yields continue to surge higher as they digest the Fed's Sept. 21 75 bps rate hike. Our broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 679), shows a 7-day yield of 2.23%, up 22 bps in the week through Friday. The Crane Money Fund Average is up 120 bps since beginning of July and up 176 bps from 0.47% at the beginning of June. Prime Inst MFs were up 22 bps to 2.41% in the latest week, up 114 bps since the start of July and up 177 bps since the start of June (close to double from the month prior). Government Inst MFs rose by 24 bps to 2.29%, they are up 119 bps since start of July and up 175 bps since the start of June. Treasury Inst MFs up 22 bps for the week at 2.29%, up 125 bps since beginning of July and up 179 bps since the beginning of June. Treasury Retail MFs currently yield 2.06%, (up 24 bps for the week, up 126 bps since July and up 176 bps since June), Government Retail MFs yield 2.00% (up 23 bps for the week, up 121 bps since July started and up 174 bps since June started), and Prime Retail MFs yield 2.27% (up 23 bps for the week, up 120 bps from beginning of July and up 179 bps from beginning of June), Tax-exempt MF 7-day yields rose by 28 bps to 1.32%, they are up 76 bps since the start of July and up 94 bps since the start of June. According to Monday's Money Fund Intelligence Daily, with data as of Friday (9/23), just 19 funds (out of 818 total) still yield between 0.00% and 0.99% with assets of $1.2 billion, or 0.0% of total assets; 91 funds yield between 1.00% and 1.49% with $48.7 billion in assets, or 1.0%; 78 funds yielded between 1.50% and 1.74% with $95.7 billion or 1.9%; 85 funds yielded between 1.75% and 1.99% ($96.0 billion, or 1.9%); 165 funds yielded between 2.00% and 2.24% ($1.021 trillion, or 20.3%) and 380 funds yielded 2.25% or more ($3.763 trillion, or 74.9%). Brokerage sweep rates jumped over the past week. Our Crane Brokerage Sweep Index, the average rate for brokerage sweep clients (almost all of which are swept into FDIC insured accounts; only Fidelity sweeps to a money market fund), rose this past week at 0.29%. The latest Brokerage Sweep Intelligence, with data as of Sept. 23, shows just one rate change over the previous week. Last week, Fidelity increased rates to 1.57% for all balances between $1K and over $5 million. Just 3 of 11 major brokerages still offer rates of 0.01% for balances of $100K (and most other tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
