Crane 100 MF Index Falls to 3.95%
Money fund yields (7-day, annualized, simple, net) declined by 8 bps to 3.95% on average during the week ended Friday, September 26 (as measured by our Crane 100 Money Fund Index), after falling 6 bps the week prior. Fund yields should continue to inch lower in the coming weeks as they finish digesting the Fed's Sept. 17 25 bps cut. They've declined by 111 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 68 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.11% on 8/31, 4.12% on 7/31, 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 676), shows a 7-day yield of 3.84%, down 9 bps in the week through Friday. Prime Inst money fund yields were down 10 bps at 4.05% in the latest week. Government Inst MFs were down 10 bps at 3.94%. Treasury Inst MFs were down 6 bps at 3.89%. Treasury Retail MFs currently yield 3.66%, Government Retail MFs yield 3.66% and Prime Retail MFs yield 3.84%, Tax-exempt MF 7-day yields were up 11 bps to 2.44%. Assets of money market funds rose by $71.8 billion last week to $7.730 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.730 trillion on September 26, breaking above a previous high of $7.726 trillion set on September 25. For the month of September (MTD), MMF assets have increased $127.8 billion after increasing by $132.0 billion in August, $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, and $97.5 billion in October. Weighted average maturities were at 41 days for the Crane MFA and 42 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (9/26), 116 money funds (out of 787 total) yield under 3.0% with $142.7 billion in assets, or 1.8%; 443 funds yield between 3.00% and 3.99% ($2.955 trillion, or 38.2%), 228 funds yield between 4.0% and 4.99% ($4.632 trillion, or 59.9%) 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 0.39%, after falling 1 bp the week prior. The latest Brokerage Sweep Intelligence, with data as of September 26, 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.
