MMF Yields Remain Flat at 5.16%

Sep 19 23

Money fund yields remained unchanged for the third straight week, averaging 5.16%, as measured by our Crane 100 Money Fund Index for the week ended Friday, 9/15. The Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. We expect yields to remain flat in coming days as they've finished digesting the Fed's (last) July 26th 25 basis point hike. Yields were 5.16% on 8/31, 5.09% on July 31, 4.94% on June 30, 4.61% on March 31 and 4.05% on 12/31/22. The vast majority of money market fund assets now yield 5.0% or higher. Assets of money market funds fell by $23.6 billion last week to $5.998 trillion according to Crane Data's Money Fund Intelligence Daily, and they have risen by $18.7 billion since the start of September (after rising $98.3 billion in August). Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 682), shows a 7-day yield of 5.06%, up 1 bp in the week through Friday. Prime Inst MFs were up 1 bp at 5.26% in the latest week. Government Inst MFs were up 1 bp at 5.12%. Treasury Inst MFs up 1 bp for the week at 5.10%. Treasury Retail MFs currently yield 4.87%, Government Retail MFs yield 4.83%, and Prime Retail MFs yield 5.08%, Tax-exempt MF 7-day yields were down 37 bps to 2.74%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (9/15), 111 money funds (out of 809 total) yield under 3.0% with $85.8 billion in assets, or 1.4%; 20 funds yield between 3.00% and 3.99% ($38.2 billion, or 0.6%), 225 funds yield between 4.0% and 4.99% ($1.255 trillion, or 20.9%) and 453 funds now yield 5.0% or more ($4.619 trillion, or 77.0%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.62% after rising 1 bp five weeks prior. The latest Brokerage Sweep Intelligence, with data as of Sept 15, 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.

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