Crane 100 Index Grinds Up to 4.89%
Money fund yields inched higher again over the past week as they digest the remainder of the Federal Reserve's May 2nd 25 basis point rate increase. Our Crane 100 Money Fund Index (7-Day Yield) was up 4 bps to 4.89% in the week ended Friday, 5/26, after increasing by 1 bp the week prior. Yields are up from 4.64% on April 30, 4.61% on March 31, 4.39% on Feb. 28, 4.15% on Jan. 31 and 4.05% on 12/31/22. They've increased from 3.59% on Nov. 30, from 2.88% on Oct. 31 and from 2.66% on Sept. 30. A number of the top-yielding money market funds now yield above the 5.0% level, and more should move above this level in coming days as they digest the remainder of the latest Fed hike. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 689), shows a 7-day yield of 4.77%, up 4 bps in the week through Friday. Prime Inst MFs were up 1 bp at 4.97% in the latest week. Government Inst MFs rose by 3 bps to 4.87%. Treasury Inst MFs up 8 bps for the week at 4.76%. Treasury Retail MFs currently yield 4.54%, Government Retail MFs yield 4.55%, and Prime Retail MFs yield 4.80%, Tax-exempt MF 7-day yields were up 24 bps at 2.84%. According to Tuesday's Money Fund Intelligence Daily, with data as of Friday (5/26), just one money fund (out of 819 total) yields under 2.0%; 84 funds yield between 2.00% and 2.99% with $48.5 billion, or 0.8%; 54 funds yield between 3.00% and 3.99% ($72.6 billion, or 1.3%), 526 funds yield between 4.0% and 4.99% ($3.387 trillion, or 58.5%) and 154 funds now yield 5.0% or more ($2.280 trillion, or 39.4%). Over the past week, 26 funds are yielding above the 5.0% mark (though many are private and not listed in our "Highest-Yielding Funds" table above) and we expect more to follow in coming days. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.59% after rising 3 bps two weeks ago. The latest Brokerage Sweep Intelligence, with data as of May 26, shows that there were no changes over the past week. Just 3 of 11 major brokerages still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
