Money Fund Yields Flat at 3.50%
Money fund yields (7-day, annualized, simple, net) were unchanged at 3.50% on average during the week ended Friday, January 30 (as measured by our Crane 100 Money Fund Index), after decreasing 1 bp the week prior. Fund yields haven't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged last week. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 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 681), shows a 7-day yield of 3.40%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.62% in the latest week. Government Inst MFs were unchanged at 3.51%. Treasury Inst MFs were down 1 bp at 3.45%. Treasury Retail MFs currently yield 3.22%, Government Retail MFs yield 3.20% and Prime Retail MFs yield 3.42%, Tax-exempt MF 7-day yields were up 64 bps to 1.74%. Money market mutual fund assets have fallen since hitting a record high of $8.165 trillion on January 6, according to our Money Fund Intelligence Daily. Assets have risen $49.8 billion in the week through Friday, but they've increased by $32.9 billion in January month-to-date (through 1/30). MMF assets increased by $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April. Assets increased by $2.8 billion in March, $94.2 billion in February, and $52.8 billion last January. Weighted average maturities were at 40 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 (1/30), just 163 money funds (out of 791 total) yield under 3.0% with $190.0 billion in assets, or 2.3%, while the vast majority (628) of funds yield between 3.00% and 3.99% ($7.952 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point six weeks prior. The latest Brokerage Sweep Intelligence, with data as of January 30, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
