Money Fund Yields Flat in Latest Week
Money fund yields were mostly flat last week as they've now mostly digested the Fed's March 22nd 25 basis point rate hike. Yields should be flat going forward until the Fed changes rates again (perhaps on May 2). Our Crane 100 Money Fund Index (7-Day Yield) was up 1 bp to 4.62% in the week ended Friday, 4/6. Yields are up from 4.39% on Feb. 28, 4.15% on Jan. 31 and 4.05% on 12/31/22. They've increased from 3.59% on Nov. 30, from 2.88% on Oct. 31 and from 2.66% on Sept. 30. A handful of the top-yielding money market funds continue to break the 5.0% level. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 687), shows a 7-day yield of 4.50%, up 1 bp in the week through Thursday (Friday being a Holiday). Prime Inst MFs were unchanged at 4.72% in the latest week. Government Inst MFs rose by 1 bp to 4.59%. Treasury Inst MFs up 1 bp for the week at 4.47%. Treasury Retail MFs currently yield 4.25%, Government Retail MFs yield 4.29%, and Prime Retail MFs yield 4.55%, Tax-exempt MF 7-day yields were down at 3.01%. According to Monday's Money Fund Intelligence Daily, with data as of Thursday (4/6), zero money funds (out of 823 total) yield under 2.0%; 63 funds yield between 2.00% and 2.99% with $33.1 billion, or 0.6%; 120 funds yield between 3.00% and 3.99% ($117.8 billion, or 2.1%), and 640 funds yield 4.0% or more ($5.449 trillion, or 97.3%). Eight funds have now officially surpassed the 5.0% mark (though most are private and not listed in our "Highest-Yielding Funds" table above) and we expect more to follow in coming days. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was up 1 bp to 0.56% after increasing 1 bp two weeks prior. The latest Brokerage Sweep Intelligence, with data as of April 6, shows that there was one change over the past week. RW Baird increased rates to 1.76% for all balances between $1k and $999K, to 2.74% for balances between $1 million and $1.9 million, and to 3.54% for balances of $5 million and more. Just 3 of 11 major brokerages still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
