Money Fund Yields Flat at 4.91%
Money fund yields were flat over the past week; they're now finished digesting the Federal Reserve's May 2nd 25 basis point rate hike. Our Crane 100 Money Fund Index (7-Day Yield) was unchanged at 4.91% in the week ended Friday, 6/9, after increasing by 2 bps the week prior. Yields are up from 4.90% on May 31, 4.64% on April 30, 4.61% on March 31, 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. Just under half of money market fund assets now yield above the 5.0% level. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 694), shows a 7-day yield of 4.80%, up 1 bp in the week through Friday. Prime Inst MFs were up 1 bp at 4.98% in the latest week. Government Inst MFs rose by 1 bp to 4.89%. Treasury Inst MFs up 3 bps for the week at 4.84%. Treasury Retail MFs currently yield 4.62%, Government Retail MFs yield 4.58%, and Prime Retail MFs yield 4.82%, Tax-exempt MF 7-day yields were down 34 bps at 2.72%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/9), just four money funds (out of 824 total) yields under 2.0%; 103 funds yield between 2.00% and 2.99% with $97.6 billion, or 1.7%; 30 funds yield between 3.00% and 3.99% ($25.0 billion, or 0.4%), 512 funds yield between 4.0% and 4.99% ($3.097 trillion, or 52.7%) and 175 funds now yield 5.0% or more ($2.653 trillion, or 45.2%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.59% after rising 3 bps four weeks ago. The latest Brokerage Sweep Intelligence, with data as of June 9, shows that there were no changes over the past week. 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.
