Money Fund Yields Flat Ahead of Fed
Money fund yields (7-day, annualized, simple, net) were unchanged at 3.47% on average during the week ended Friday, July 24 (as measured by our Crane 100 Money Fund Index), after increasing 2 bps the week prior. Fund yields hadn'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) unless and until the Fed moves rates higher. Yields were 3.44% on 5/31/26, 3.47% on 3/31, 3.58% on 12/31/25, 3.94% on 9/30/25, 4.13% on 6/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 723), shows a 7-day yield of 3.38%, up 1 bp in the week through Friday. Prime Inst money fund yields were unchanged at 3.59% in the latest week. Government Inst MFs were up 1 bps at 3.46%. Treasury Inst MFs were up 1 bp at 3.45%. Treasury Retail MFs currently yield 3.22%, Government Retail MFs yield 3.19% and Prime Retail MFs yield 3.37%, Tax-exempt MF 7-day yields were up 19 bps to 2.33%. Money market mutual fund assets hit an all-time record high of $8.404 trillion on July 6, according to our Money Fund Intelligence Daily. But assets have decreased $20.5 billion in the week through Friday, and they've decreased by $97.3 billion in July month-to-date (through 7/24). MMF assets increased by $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $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 last July. Weighted average maturities were at 38 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (7/24), just 162 money funds (out of 834 total) yield under 3.0% with $224.3 billion in assets, or 2.7%, while the vast majority (672) of funds yield between 3.00% and 3.99% ($8.029 trillion, or 97.3%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp nine weeks prior. The latest Brokerage Sweep Intelligence, with data as of July 24, 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.
