Money Fund Yields Dip to 4.11%
Money fund yields (7-day, annualized, simple, net) decreased by two basis points to 4.11% on average during the week ended Friday, August 8 (as measured by our Crane 100 Money Fund Index), after increasing 2 bps the week prior. Fund yields should stay relatively flat until (or if) the Fed moves rates again later this year. They've declined by 95 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 52 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.13% on 6/30, 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 677), shows a 7-day yield of 4.01%, down 1 bp in the week through Friday. Prime Inst money fund yields were down 1 bp at 4.24% in the latest week. Government Inst MFs were down 2 bps at 4.11%. Treasury Inst MFs were down 1 bp at 4.06%. Treasury Retail MFs currently yield 3.82%, Government Retail MFs yield 3.83%, and Prime Retail MFs yield 4.01%, Tax-exempt MF 7-day yields were down 50 bps to 1.79%. Assets of money market funds rose by $53.6 billion last week to $7.539 trillion, according to Crane Data's Money Fund Intelligence Daily.MMF assets hit a record high of $7.547 trillion (on August 7) after their previous high of $7.532 trillion set on August 5. For the month of August (MTD), MMF assets have increased $68.7 billion after increasing by $63.7 billion in July, $6.7 billion in June, $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were at 40 days for the Crane MFA and 41 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (8/8), 116 money funds (out of 789 total) yield under 3.0% with $142.4 billion in assets, or 1.9%; 247 funds yield between 3.00% and 3.99% ($1.320 trillion, or 17.5%), 426 funds yield between 4.0% and 4.99% ($6.076 trillion, or 80.6%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.40%, after falling 1 bp twelve weeks prior. The latest Brokerage Sweep Intelligence, with data as of August 8, shows no changes over the past week. 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.
