Crane 100 Up to 2.73%, Sweeps 0.34%
Money fund yields climbed again last week -- our Crane 100 Money Fund Index (7-Day Yield) rose 5 basis points to 2.73% in the week ended Friday, 10/7. Yields rose by 34 basis points the previous week, 24 bps the week before that, and 5 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 quadruple 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 move 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 2.60%, up 5 bps in the week through Friday. The Crane Money Fund Average is up 157 bps since beginning of July and up 213 bps from 0.47% at the beginning of June. Prime Inst MFs were up 4 bps to 2.84% in the latest week, up 157 bps since the start of July and up 220 bps since the start of June (close to double from the month prior). Government Inst MFs rose by 3 bps to 2.62%, they are up 152 bps since start of July and up 208 bps since the start of June. Treasury Inst MFs up 7 bps for the week at 2.61%, up 157 bps since beginning of July and up 211 bps since the beginning of June. Treasury Retail MFs currently yield 2.39%, (up 6 bps for the week, up 159 bps since July and up 209 bps since June), Government Retail MFs yield 2.38% (up 5 bps for the week, up 159 bps since July started and up 212 bps since June started), and Prime Retail MFs yield 2.70% (up 6 bps for the week, up 163 bps from beginning of July and up 222 bps from beginning of June), Tax-exempt MF 7-day yields rose by 24 bps to 2.01%, they are up 145 bps since the start of July and up 163 bps since the start of June. According to Tuesday's Money Fund Intelligence Daily, with data as of Friday (10/7), 90 funds (out of 818 total) still yield between 0.00% and 1.99% with assets of $50.2 billion, or 1.0% of total assets; 261 funds yield between 2.00% and 2.49% with $589.4 billion in assets, or 11.7%; 413 funds yielded between 2.50% and 2.99% with $3.957 trillion, or 78.7%; and just 54 funds yielded 3.00% or more ($429.8 billion, or 8.5%). Brokerage sweep rates remained mostly unchanged 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), was unchanged this past week at 0.34%. The latest Brokerage Sweep Intelligence, with data as of Oct. 7, shows two rate changes over the previous week. Ameriprise Financial Services increased rates to 0.15% for all balances between $1K and $249K, to 0.25% for balances between $250K and $999K, to 0.40% for all balances between $1 million and $4.9 million and to 0.60% for all balances over $5 million. RW Baird increased rates to 1.20% for all balances between $250K and $999K, to 1.70% for all balances between $1 million and $1.9 million and to 2.13% for all balances 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.
