Money Fund Yields Flat at 4.94%
Money fund yields were flat over the past week. Our Crane 100 Money Fund Index (7-Day Yield) was unchanged at 4.94% in the week ended Friday, 7/7, after increasing by 1 bp 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. Over half of money market fund assets now yield above the 5.0% level. Assets of money market funds fell by $5.5 billion last week to $5.841 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were flat on the week at 23 days (Crane 100), but they rose by 3 days during June. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 694), shows a 7-day yield of 4.83%, unchanged in the week through Friday. Prime Inst MFs were unchanged at 5.01% in the latest week. Government Inst MFs were unchanged at 4.90%. Treasury Inst MFs up 1 bp for the week at 4.88%. Treasury Retail MFs currently yield 4.66%, Government Retail MFs yield 4.61%, and Prime Retail MFs yield 4.86%, Tax-exempt MF 7-day yields were down 53 bps at 3.03%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (7/7), one money fund (out of 824 total) yield under 2.0%; 53 funds yield between 2.00% and 2.99% with $36.8 billion, or 0.6%; 82 funds yield between 3.00% and 3.99% ($89.9 billion, or 1.5%), 475 funds yield between 4.0% and 4.99% ($2.648 trillion, or 45.3%) and 213 funds now yield 5.0% or more ($3.066 trillion, or 52.5%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.59% after rising 3 bps eight weeks ago. The latest Brokerage Sweep Intelligence, with data as of July 7, shows that there were no changes over the past week. Three of the 11 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
