"Vanguard completes merger of two money market funds" is the title of a posting on www.vanguard.com. The release says, "Vanguard has completed the merger of the $6.2 billion Vanguard Treasury Money Market Fund (VMPXX) into the lower-cost $20.2 billion Vanguard Admiral Treasury Money Market Fund (VUSXX), effective at the open of business on August 11, 2009. The merger of Vanguard Treasury Money Market Fund, which had an expense ratio of 0.28%, into the Admiral Treasury Money Market Fund, with its lower expense ratio of 0.15%, reduces expenses for Treasury Fund shareholders, while helping the yields of the funds remain competitive. Vanguard's actions come amid continuing strong demand for government-backed securities, which have served as a safe-haven during the global financial crisis. This increased demand, coupled with cuts to prevailing interest rates by the Federal Reserve, has driven yields of government-backed securities to record lows, with current one- and three-month Treasury bills yielding less than 0.20%. As securities in Vanguard money market funds mature, the reinvestment of assets into new, lower-yielding securities decreases the funds' yields." In other news, ICI's weekly "Money Market Mutual Fund Assets", says, "Total money market mutual fund assets decreased by $12.83 billion to $3.594 trillion for the week ended Wednesday, August 12.

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