MMF Yields Inch Back Down to 3.92%
Money fund yields (7-day, annualized, simple, net) decreased by 1 bp to 3.92% on average during the week ended Friday, October 24 (as measured by our Crane 100 Money Fund Index), after rising 2 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, and they should move lower again if, as expected, the Fed cuts again on October 29. They've declined by 114 bps since the Fed first cut in the Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 71 bps since the Fed cut rates by 1/4 point on 11/7/24. Yields were 3.94% on 9/30, 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 3.82%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 4.06% in the latest week. Government Inst MFs were unchanged at 3.94%. Treasury Inst MFs were down 1 bp at 3.84%. Treasury Retail MFs currently yield 3.61%, Government Retail MFs yield 3.65% and Prime Retail MFs yield 3.85%, Tax-exempt MF 7-day yields were up 6 bps to 2.17%. Assets of money market funds rose by $22.4 billion last week to $7.764 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.793 trillion on October 21. Month-to-date in October (through 10/24), MMF assets have increased $56.7 billion, after increasing by $105.2 trillion in September, $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 last 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 (10/24), 116 money funds (out of 787 total) yield under 3.0% with $144.5 billion in assets, or 1.9%; 495 funds yield between 3.00% and 3.99% ($3.600 trillion, or 46.4%), 176 funds yield between 4.0% and 4.99% ($4.020 trillion, or 51.8%) 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 0.36%, after falling 3 bps three weeks prior. The latest Brokerage Sweep Intelligence, with data as of October 24, 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.
