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A press release titled, "Dreyfus Launches BOLD Future, Bringing the Power of BOLD to Retail Investors" tells us, "Dreyfus, BNY Mellon's affiliated liquidity manager, announced the launch of BOLD Future, a new share class for retail investors of the Dreyfus Government Cash Management fund. Building on the demand from institutional investors for BOLD, which stands for Black Opportunity for Learning and Development, BOLD Future will support Howard University's Graduation, Retention, and Access to Continued Excellence (GRACE) Grant by making an annual donation of 10% of the net revenue of the share class to a dedicated scholarship within the GRACE Grant." The release continues, "BOLD Future is designed to address the liquidity needs of financial advisors and their clients with an investment minimum of $25,000. BOLD Future is the latest innovation from Dreyfus in its 50th year as a leading provider of liquidity solutions." John Tobin, Chief Investment Officer at Dreyfus, says, "As one of the largest and most trusted cash and liquidity managers, we're delighted to deepen our partnership with Howard University and applaud their ongoing commitment to helping the highest-need students graduate. We are proud to have donated over $1 million to Howard University's GRACE Grant, powered by the strong commitment of our institutional clients. With the launch of BOLD Future, Dreyfus now offers financial advisors and their clients the same opportunity to make their money work harder by doing well and doing good." Ben Vinson, III, PhD, President of Howard University, comments, "Our partnership with Dreyfus is a game changer in eliminating financial barriers for Howard University students so that they focus more on completing college degrees, excelling in their chosen fields and advancing a more just and equitable society. Investing in the GRACE Grant not only strengthens retention and graduation rates, but also enables students to lead and succeed in making the world a better place for everyone. Our nation and the world stand to benefit from this type of transformative support as we move Howard forward toward maximum strength." For more on ESG and D&I MMFs, see these Crane Data News stories: "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit; MM Basics" (5/22/24).

Money fund yields were down 2 bps to 5.12% on average (as measured by our Crane 100 Money Fund Index) in the week ended May 31, after rising 1 bp the week prior. Our Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. Yields were 5.13% on 4/30, 5.14% on 3/31 and 2/29/24, 5.17% on 1/31/24, 5.20% on 12/31/23, 4.94% on 6/30/23, 4.61% on 3/31/23 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 rose by $10.0 billion last week to $6.483 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 712), shows a 7-day yield of 5.03%, down 1 bp in the week through Friday. Prime Inst MFs were down 2 bps at 5.19% in the latest week. Government Inst MFs were down 1 bp at 5.11%. Treasury Inst MFs were down 1 bp at 5.07%. Treasury Retail MFs currently yield 4.85%, Government Retail MFs yield 4.83%, and Prime Retail MFs yield 5.03%, Tax-exempt MF 7-day yields were down 34 bps at 2.79%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/7), 97 money funds (out of 832 total) yield under 3.0% with $101.3 billion in assets, or 1.6%; 27 funds yield between 3.00% and 3.99% ($33.7 billion, or 0.5%), 255 funds yield between 4.0% and 4.99% ($1.331 trillion, or 20.5%) and 453 funds now yield 5.0% or more ($5.017 trillion, or 77.4%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was down 1 bp at 0.62%. The latest Brokerage Sweep Intelligence, with data as of June 7, shows that there was one change over the past week, RW Baird lowered rates to 1.92% for accounts of $1 to $999K, to 3.04% for accounts of $1M to $1.9M and to 3.96% for accounts of $5M and greater. Three weeks prior we saw the removal of TD Ameritrade from the listings pushed the averages higher (2 bps). Three of the 10 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. (Note: Four weeks ago we removed rates for TD Ameritrade from BSI since it completed its merger with Charles Schwab.)

On Friday, BlackRock filed to liquidate 2 of its 3 Prime Institutional money market funds, bringing the number of Prime Inst MMFs liquidating or converting to Government to 12 to date (with total assets of $245.8 billion, or 38.7% the $635.8 billion in Prime Inst MMFs). A Prospectus Supplement dated June 7 for the $5.4 billion BlackRock Liquidity Funds - TempFund says, "On May 16, 2024, the Board of Trustees of BlackRock Liquidity Funds (the 'Trust') on behalf of its series TempFund, approved a proposal to close the Fund to new investors and thereafter to liquidate the Fund. Accordingly, effective at 3:00 p.m. (Eastern time) on June 14, 2024, the Fund will no longer accept purchase orders from new investors. On or about September 5, 2024 (the 'Liquidation Date'), all of the assets of the Fund will be liquidated completely, the shares of any shareholders holding shares on the Liquidation Date of the Fund will be redeemed at the net asset value per share and the Fund will then be terminated as a series of the Trust." It continues, "Shareholders may continue to redeem their Fund shares at any time prior to the Liquidation Date. In preparation for the liquidation, the Fund may deviate from its investment objective and principal investment strategies. Shareholders should consult their personal tax advisers concerning their tax situation and the impact of the liquidation on their tax situation." A second June 7 filing for the BlackRock Funds - BlackRock Liquid Environmentally Aware Fund, a "Prospectuses and Statement of Additional Information of the Fund," explains, "On May 16, 2024, the Board of Trustees of BlackRock Funds (the 'Trust'), on behalf of its series, BlackRock Liquid Environmentally Aware Fund (the 'Fund'), approved a proposal to close the Fund to new investors and thereafter to liquidate the Fund. Accordingly, effective 3:00 p.m. (Eastern time) on June 14, 2024, the Fund will no longer accept purchase orders from new investors to purchase Fund shares. On or about September 5, 2024 (the 'Liquidation Date'), all of the assets of the Fund will be liquidated completely, the shares of any shareholders holding shares on the Liquidation Date will be redeemed at the net asset value per share and the Fund will then be terminated as a series of the Trust." BlackRock adds, "Shareholders may continue to redeem their Fund shares at any time prior to the Liquidation Date. In preparation for the liquidation, the Fund may deviate from its investment objective and principal investment strategies. Shareholders should consult their personal tax advisers concerning their tax situation and the impact of the liquidation on their tax situation." BlackRock is not liquidating its $17.0 billion TempCash (TMCXX) Prime Inst portfolio, nor its $3.2 billion Prime Retail BlackRock Wealth LEAF (PINXX). For more on Prime Institutional MMF changes, see these Crane Data News stories: "Allspring to Merge Heritage MMF Into Govt MMF; UBS Converting Fund" (6/3/24), "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit" (5/22/24), "Dreyfus Files to Liquidate Cash Management Prime Inst MMF, Tax Exempt" (5/13/24), "Goldman Files to Liquidate Prime Inst MMFs; Barron's: MMFs Tempting" (4/22/24), "Federated Liquidating Money Mkt Trust" (4/1/24), "Vanguard Market Liquidity Fund Files to Go Government, Joins American" (3/20/24) and "American Funds Central Cash to Convert to Govt to Avoid Liquidity Fees" (2/6/24).) For more on liquidations in the ESG MMF space, see these stories, "UBS Latest to Abandon ESG Money Funds; JNL Liquidates Money Fund" (10/13/23) and "Morgan Stanley Latest to Abandon ESG MMFs; Weekly, ICI Portfolio Holds" (8/16/23).

The Investment Company Institute published its latest weekly "Money Market Fund Assets" report, Thursday. ICI's weekly shows money market mutual fund assets rising for the seventh straight week to $6.093 trillion, just $18 billion below their April 3 record of $6.111 trillion. MMF assets are up by $206 billion, or 4.4%, year-to-date in 2024 (through 6/5/24), with Institutional MMFs up $48 billion, or 1.6% and Retail MMFs up $158 billion, or 9.4%. Over the past 52 weeks, money funds have risen by $636 billion, or 11.7%, with Retail MMFs rising by $465 billion (23.4%) and Inst MMFs rising by $171 billion (4.9%). The weekly release says, "Total money market fund assets increased by $23.14 billion to $6.09 trillion for the week ended Wednesday, June 5, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $16.37 billion and prime funds increased by $5.27 billion. Tax-exempt money market funds increased by $1.50 billion." ICI's stats show Institutional MMFs increasing $8.9 billion and Retail MMFs rising $14.3 billion in the latest week. Total Government MMF assets, including Treasury funds, were $4.921 trillion (80.8% of all money funds), while Total Prime MMFs were $1.041 trillion (17.1%). Tax Exempt MMFs totaled $130.7 billion (2.1%). ICI explains, "Assets of retail money market funds increased by $14.25 billion to $2.45 trillion. Among retail funds, government money market fund assets increased by $8.95 billion to $1.56 trillion, prime money market fund assets increased by $4.19 billion to $769.33 billion, and tax-exempt fund assets increased by $1.10 billion to $118.66 billion." Retail assets account for over a third of total assets, or 40.2%, and Government Retail assets make up 63.7% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $8.90 billion to $3.64 trillion. Among institutional funds, government money market fund assets increased by $7.42 billion to $3.36 trillion, prime money market fund assets increased by $1.08 billion to $271.55 billion, and tax-exempt fund assets increased by $393 million to $12.04 billion." Institutional assets accounted for 59.8% of all MMF assets, with Government Institutional assets making up 92.2% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have risen by $5.4 billion in June (through 6/5) to $6.479 trillion. (They hit a record $6.538 trillion on 4/2.) Assets rose by $91.4 billion in May, fell $15.8 billion in April and $68.8 billion in March. But they rose $72.1 billion in February, $93.9 billion in January, $32.7 billion in December and $226.4 billion in November. MMF totals fell by $31.9 billion in October. They rose $93.9 billion in September, $98.3 billion in August and $34.7 billion in July. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $400 billion lower than Crane's asset series.

Bloomberg published the article, "Nvidia Leads Companies Minting Money as Interest Earned From Cash Surges." It explains, "With interest rates at more than decade-highs, corporate finance chiefs are finding that money can indeed beget money. Almost 1-in-10 non-financial companies in the S&P 500, or more than three dozen firms, earned more in interest income than they paid in debt expense during the first quarter, according to data compiled by Bloomberg based on members in the index that break out interest costs. While that number is largely unchanged from the prior-year period, the interest income reaped by those companies -- a cohort that includes Alphabet Inc., Tesla Inc. and Johnson & Johnson -- is up about 60%. Corporate cash piles swelled during the pandemic, and now that benchmark interest rates are north of 5%, companies are reaping higher returns by investing in money-market funds, government securities and certificates of deposit. That additional income stream is expected to keep flowing in, with Federal Reserve officials signaling a willingness to keep rates higher for an extended period." They quote Bank of America's Mark Cabana, "Corporates are earning more money by holding cash. Many companies are comfortable with where the economy is as well as with elevated cash levels, because they are getting a return for it." The piece continues, "One standout is chipmaker Nvidia Corp., which reported $359 million in interest income for the first quarter, more than double what it earned during the prior-year period and enough to cover quarterly interest expense of $64 million. Nvidia also reaped enough interest income to cover its $98 million dividend -- the only member of the S&P 500 to do so during the quarter. For the companies that report higher interest income than interest spending, interest income leaped almost 60% to $6.9 billion, compared with the first quarter of 2023.... Nvidia's cash hoard has ballooned in recent quarters, aided by a surge in demand for its chips that power artificial intelligence applications. The Santa Clara, California-based company now has more than $31.4 billion in cash, cash equivalents and short-term investments, up from $15.3 billion during the prior-year period. Like some of its peers, Nvidia is invested in money-market funds, reporting over $5 billion in holdings for the past quarter. The company also owns US government debt, corporate bonds and certificates of deposits, it said in a filing." The article adds, "Money-market fund holdings by institutional investors have grown by almost 20% since 2022, totaling about $3.63 trillion as of May 29. Corporates are believed to make up the lion's share of those holdings, Cabana said. With total holdings north of $6 trillion as of May 29, money-market funds have generated approximately $379 billion in returns over the past year, according to Crane Data LLC, which tracks money markets. 'As the economy keeps growing and we enter the seasonally stronger second half of the year, corporate cash levels should keep growing,' said Peter Crane, president of Crane Data. There may be temporary declines, he said -- for example around June 15, when many companies pay their taxes."

Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of May 31) includes Holdings information from 59 money funds (down 16 from a week ago), or $2.703 trillion (down from $3.366 trillion) of the $6.473 trillion in total money fund assets (or 41.8%) tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our May 10 News, "May Money Fund Portfolio Holdings: Repo Jumps to No. 1, T-Bills Plunge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.147 trillion (down from $1.472 trillion a week ago), or 42.5%; Repurchase Agreements (Repo) totaling $1.071 trillion (down from $1.266 trillion a week ago), or 39.6%, and Government Agency securities totaling $241.4 billion (down from $274.5 billion), or 8.9%. Commercial Paper (CP) totaled $87.3 billion (down from a week ago at $111.8 billion), or 3.2%. Certificates of Deposit (CDs) totaled $64.7 billion (down from $92.8 billion a week ago), or 2.4%. The Other category accounted for $61.5 billion or 2.3%, while VRDNs accounted for $29.3 billion, or 1.1%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.147 trillion (42.5% of total holdings), Fixed Income Clearing Corp with $236.6B (8.8%), Federal Home Loan Bank with $179.6B (6.6%), the Federal Reserve Bank of New York with $106.3 billion (3.9%), Citi with $76.3B (2.8%), JP Morgan with $69.8B (2.6%), BNP Paribas with $69.6B (2.6%), RBC with $61.7B (2.3%), Federal Farm Credit Bank with $59.9B (2.2%) and Goldman Sachs with $55.4B (2.1%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($253.6B), Goldman Sachs FS Govt ($229.5B), JPMorgan 100% US Treas MMkt ($204.5B), Fidelity Inv MM: Govt Port ($200.9B), Morgan Stanley Inst Liq Govt ($141.0B), Fidelity Inv MM: MM Port ($129.1B), State Street Inst US Govt ($120.9B), Allspring Govt MM ($119.0B), Dreyfus Govt Cash Mgmt ($111.2B) and Goldman Sachs FS Treas Instruments ($92.4B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)

Money fund yields were up 1 bp at 5.14% on average (as measured by our Crane 100 Money Fund Index) in the week ended May 31, after rising 1 bp the week prior. Our Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. Yields were 5.13% on 4/30, 5.14% on 3/31 and 2/29/24, 5.17% on 1/31/24, 5.20% on 12/31/23, 4.94% on 6/30/23, 4.61% on 3/31/23 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 rose by $39.3 billion last week to $6.473 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 713), shows a 7-day yield of 5.04%, up 1 bp in the week through Friday. Prime Inst MFs were up 1 bp at 5.21% in the latest week. Government Inst MFs were up 1 bp at 5.12%. Treasury Inst MFs were up 1 bp at 5.08%. Treasury Retail MFs currently yield 4.86%, Government Retail MFs yield 4.84%, and Prime Retail MFs yield 5.03%, Tax-exempt MF 7-day yields were down 13 bps at 3.14%. According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/31), 24 money funds (out of 834 total) yield under 3.0% with $1.7 billion in assets, or 0.0%; 100 funds yield between 3.00% and 3.99% ($133.9 billion, or 2.1%), 246 funds yield between 4.0% and 4.99% ($1.320 trillion, or 20.4%) and 464 funds now yield 5.0% or more ($5.018 trillion, or 77.5%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.63%. The latest Brokerage Sweep Intelligence, with data as of May 31, shows that there were no changes over the past week, two weeks prior we saw the removal of TD Ameritrade from the listings pushed the averages higher (2 bps). Three of the 10 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. (Note: Three weeks ago we removed rates for TD Ameritrade from BSI since it completed its merger with Charles Schwab.)

A Prospectus Supplement for the TIAA-CREF Fixed-Income Funds says, "The Board of Trustees of the TIAA-CREF Funds has approved a change in the following Funds' names, effective May 1, 2024." It tells us that TIAA-CREF Money Market Fund is now Nuveen Money Market Fund, TIAA-CREF Bond Index Fund is now Nuveen Bond Index Fund, TIAA-CREF Core Bond Fund is now Nuveen Core Bond Fund, TIAA-CREF Core Impact Bond Fund is now Nuveen Core Impact Bond Fund, TIAA-CREF Core Plus Bond Fund is now Nuveen Core Plus Bond Fund, TIAA-CREF Green Bond Fund is now Nuveen Green Bond Fund, TIAA-CREF High-Yield Fund is now Nuveen High Yield Fund, TIAA-CREF Short Duration Impact Bond Fund is now Nuveen Short Duration Impact Bond Fund, TIAA-CREF Short-Term Bond Fund is now Nuveen Short Term Bond Fund, and TIAA-CREF Short-Term Bond Index Fund is now Nuveen Short Term Bond Index Fund. The filing adds, "There will be no changes to the investment objectives, principal investment strategies, principal investment risks or portfolio management of the Funds in connection with these name changes. The Board has also approved changes to the names of certain of the Funds' share classes, effective May 6, 2024. Therefore, as of May 6, 2024, all references to the following share classes in the Summary Prospectuses and Statutory Prospectus are hereby changed as follows: Institutional Class is now Class R6, Advisor Class is now Class I and Retail Class is now Class A."

Barron's writes, "Treasury Bills Are the Best Place to Park Your Cash. Just Ask Warren Buffett." They explain, "Investors large and small are gravitating to Treasury bills, thanks to yields of 5.4%, tax benefits, and sleep-at-night security -- and there's no reason for them to stop. For a while now, Treasuries with maturities of a year or less, known as T-bills, have offered more yield than other U.S. debt offerings. That's due to the so-called inverted yield curve, with short rates higher than long ones. The 10-year Treasury, for instance, yields 4.45%, while the three-month yields 5.39%. Bills have also offered positive returns -- about 2% this year, based on popular exchange-traded funds -- while long-term Treasuries are in the red." The piece continues, "Berkshire Hathaway CEO Warren Buffett is a leading proponent of short-term Treasuries. Berkshire is one of the largest T-bill investors in the world, holding $153 billion at the end of the first quarter, the bulk of its $182 billion in cash and equivalents. At Berkshire's annual meeting, Buffett called T-bills 'the safest investment there is,' saying he takes no chances with Berkshire's cash. Buffett has long favored T-bills with Berkshire's cash, even when they yielded close to zero from 2020 through 2022. Individual investors have been following Buffett's lead. Retail demand has been strong at the Treasury's regular auctions of T-bills, of which there are $6 trillion outstanding." Barron's says, "T-bills aren't the only place to earn a nice yield on cash. Investors also have access to certificates of deposit, money-market funds, and high-yield savings accounts. But bills are superior in many respects to those alternatives. For one, T-bills yield more, with online savings accounts offering interest rates of 4.4% and Marcus, a leading online bank, offering a six-month CD at 5.1%. Bills have a tax advantage, too. Their interest is exempt from state and local taxes -- a nice plus in high-tax states like New York and California, where marginal income-tax rates can top 10%. Interest on bank accounts and most money funds is subject to state and local taxes. Even investors holding government money funds can be hit with these taxes because they often hold repurchase agreements -- short-term loans backed by government securities -- and not Treasuries." It adds, "ETFs focused on Treasury bills are also a popular option. They simplify ownership, offer easy liquidity, and pay monthly income. The two largest ETFs are the $32.6 billion SPDR Bloomberg 1-3 Month T-Bill (BIL) and the $21 billion iShares 0-3 Month Treasury Bond (SGOV). Both yield about 5.25% and have little rate risk, given average maturities on their portfolios of about a month. Buffett favors three-month and six-month T-bills.... In addition to the SPDR Bloomberg 1-3 Month and iShares 0-3 Month ETFs, there are the $18.8 billion iShares Short Treasury Bond (SHV) and the $5.3 billion Goldman Sachs Access Treasury 0-1 Year (GBIL). Many financial advisors use these ETFs as an alternative to money-market funds for their tax benefits."

Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of May 24) includes Holdings information from 75 money funds (up 7 from a week ago), or $3.366 trillion (up from $3.103 trillion) of the $6.434 trillion in total money fund assets (or 52.3%) tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our May 10 News, "May Money Fund Portfolio Holdings: Repo Jumps to No. 1, T-Bills Plunge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.472 trillion (up from $1.387 trillion a week ago), or 43.7%; Repurchase Agreements (Repo) totaling $1.266 trillion (up from $1.204 trillion a week ago), or 37.6%, and Government Agency securities totaling $274.5 billion (up from $256.6 billion), or 8.2%. Commercial Paper (CP) totaled $111.8 billion (up from a week ago at $88.9 billion), or 3.3%. Certificates of Deposit (CDs) totaled $92.8 billion (up from $67.6 billion a week ago), or 2.8%. The Other category accounted for $104.9 billion or 3.1%, while VRDNs accounted for $44.7 billion, or 1.3%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.472 trillion (43.7% of total holdings), Fixed Income Clearing Corp with $323.3B (9.6%), Federal Home Loan Bank with $209.9B (6.2%), the Federal Reserve Bank of New York with $141.1 billion (4.2%), Citi with $85.9B (2.6%), JP Morgan with $85.8B (2.5%), BNP Paribas with $76.9B (2.3%), RBC with $62.4B (1.9%), Federal Farm Credit Bank with $62.2B (1.8%) and Bank of America with $48.7B (1.4%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($254.4B), Goldman Sachs FS Govt ($231.4B), JPMorgan 100% US Treas MMkt ($204.6B), Fidelity Inv MM: Govt Port ($202.0B), Federated Hermes Govt ObI ($150.1B), BlackRock Lq FedFund ($148.9B), Morgan Stanley Inst Liq Govt ($138.6B), Fidelity Inv MM: MM Port ($130.5B), State Street Inst US Govt ($123.4B) and BlackRock Lq Treas Tr ($116.5B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)

Money fund yields were up 1 bp at 5.13% on average (as measured by our Crane 100 Money Fund Index) in the week ended May 24, after being unchanged the week prior. Our Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. Yields were 5.13% on 4/30, 5.14% on 3/31 and 2/29/24, 5.17% on 1/31/24, 5.20% on 12/31/23, 4.94% on 6/30/23, 4.61% on 3/31/23 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 $11.8 billion last week to $6.434 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 714), shows a 7-day yield of 5.03%, unchanged in the week through Friday. Prime Inst MFs were unchanged at 5.20% in the latest week. Government Inst MFs were up 1 bp at 5.11%. Treasury Inst MFs were unchanged at 5.07%. Treasury Retail MFs currently yield 4.85%, Government Retail MFs yield 4.83%, and Prime Retail MFs yield 5.03%, Tax-exempt MF 7-day yields were down 7 bps at 3.26%. According to Tuesday's Money Fund Intelligence Daily, with data as of Friday (5/24), 17 money funds (out of 835 total) yield under 3.0% with $1.0 billion in assets, or 0.0%; 108 funds yield between 3.00% and 3.99% ($135.6 billion, or 2.1%), 250 funds yield between 4.0% and 4.99% ($1.322 trillion, or 20.5%) and 460 funds now yield 5.0% or more ($4.976 trillion, or 77.3%). Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.63%. The latest Brokerage Sweep Intelligence, with data as of May 24, shows that there were no changes over the past week, the week prior we saw the removal of TD Ameritrade from the listings pushed the averages higher (2 bps). Three of the 10 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. (Note: Two weeks ago we removed rates for TD Ameritrade from BSI since it completed its merger with Charles Schwab.)

DWS posted a brief titled, "U.S. money market funds - a safe haven?" It tells us, "U.S. money market funds (MMFs) have experienced massive inflows since the end of 2022. At just above USD 6 trillion, they currently stand at an all-time high. In our view this isn't about to change: big outflows are unlikely in the shorter-term. But what has driven the enormous interest in this short-term investment opportunity is an important question. As is what would need to happen for capital to be withdrawn equally suddenly. These investments are, by their very nature, short term, and (overly) rapid outflows, reallocating the funds to other asset classes, can certainly happen, making markets volatile." DWS writes, "Money market funds have also seen inflows in the Eurozone recently, but the volumes appear relatively small. The chief reason, in our view, is that European investors place much less emphasis on the security aspect of funds than their U.S. counterparts. Given the much lower importance of money market funds in Europe and the Eurozone, we are only looking at the U.S. instruments in this publication." The piece explains, "In principle, MMFs do not differ from other investment funds in the way they work, and this is also an important reason why retail investors are increasingly using them to park their capital. When investor nervousness and volatility are high in the markets, money market funds tend to become more popular.... Looking at flows into U.S. money market funds over the past decade and a half, it is easy to see that periods of financial market stress have often led to a noticeable increase in volumes. The underlying source of the nervousness, whether geopolitical or from market stresses, did not seem to matter." DWS's article adds, "Research by the Federal Reserve Bank of New York has shown that, in the past, a one percentage point increase in the effective federal funds rate led to a 6-percentage point increase in fund assets over a two-year period because of the close correlation with money market fund yields. This shows that money flows are generally quite slow to react to changes in yields. In our view, however, it is also important to note that the relationship often does not hold during periods of financial stress. A pertinent example is the Covid-19 outbreak in 2020, when a massive increase in money market fund inflows coincided with a sharp decline in policy rates. Another factor in this context is the sometimes stronger, sometimes less pronounced competition between money market funds and investors' deposits at banks.... To summarize, relative attractiveness of course influences inflows into money market funds, but the relationships are complex. Which influencing factor dominates the inflows into money market funds depends very much on the broad market constellation."

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November
October
September