Money Market News
As expected, the Federal Reserve's FOMC cut interest rates by a quarter percent to a range of 4.0-4.25%, which means that money market fund yields will decline by a similar amount over the coming month. Our Crane 100 Money Fund Index, an average of the 100 largest money funds, should fall from its current 4.09% to below 4.0% next week and to around 3.85% as we move into October. (Money funds have a WAM, or weighted average maturity of 41 days currently, so they should take this long to reflect the full Fed move.) A post titled, "Federal Reserve issues FOMC statement," explains, "Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen." (Note: Safe travels to those of you headed to our European Money Fund Symposium next week in Dublin (Sept. 22-23)! We look forward to seeing you there!)
Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds increased over the past 30 days to a new record high $1.543 trillion, rising from $1.519 trillion the month prior. Yields inched lower, while assets for USD, EUR and GBP MMFs all rose over the past month. Like U.S. money fund assets, European MMFs repeatedly hit record highs in 2023, 2024 and 2025 (after a pause in Q2). These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $23.8 billion over the 30 days through 9/12. The totals are up $110.2 billion (7.7%) year-to-date for 2025, they were up $235.3 billion (19.7%) for 2024 and up $166.9 billion (16.2%) for the year 2023. (Note that currency moves in the U.S. Dollar cause Euro and Sterling totals to shift when they're translated back into totals in USD. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors and are almost entirely institutional.) (Note too: Register ASAP for our European Money Fund Symposium, which is next week, Sept. 22-23, 2025 in Dublin!)
The September issue of our Bond Fund Intelligence, which was sent to subscribers Monday, features the stories, "Bond Funds Continue Raking in Cash; ETFs Hit $2 Trillion," which covers the recent surge in bond fund inflows; and "Vanguard F-I Head Devereux Featured by Morningstar," which excerpts from a recent interview with a global head of fixed income. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns were higher while yields were lower. We excerpt from the new issue below. (Contact us if you'd like to see our latest Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data.) (Note: For those attending our European Money Fund Symposium next week, Sept. 22-23, in Dublin, Ireland, safe travels and we look forward to seeing you!)
The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") late last week, and among the 4 tables it includes on money market mutual funds, the Second Quarter 2025 edition shows that Total MMF Assets increased by $83 billion to $7.481 trillion in Q2'25. The Household Sector, by far the largest investor segment with $4.877 trillion, saw the biggest asset increase in Q2, followed by Property-Casualty Insurance. The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also showed noticeable increases for the Mutual Funds and Nonfinancial Corporate Business categories in Q2 2025. (Note: For those attending our upcoming European Money Fund Symposium, Sept. 22-23, 2025 in Dublin, Ireland, safe travels and we look forward to seeing you next week!)
The U.S. Securities and Exchange Commission published its latest monthly "Money Market Fund Statistics" summary (much later than usual this month), which shows that total money fund assets rose by $60.2 billion in July 2025 to a record high $7.533 trillion, after hitting a record $7.473 trillion the month prior. The SEC shows Prime MMFs increased $22.7 billion in July to $1.303 trillion, Govt & Treasury funds increased $39.0 billion to $6.089 trillion and Tax Exempt funds decreased $1.5 billion to $141.1 billion. Taxable yields were mixed in July after previous decreases in June, May, April, March, February and January. The SEC's Division of Investment Management summarizes monthly Form N-MFP data and includes asset totals and averages for yields, liquidity levels, WAMs, WALs, holdings, and other money market fund trends. We review their latest numbers below. (Our MFI XLS monthly shows money fund assets increasing $136.0 billion in August 2025 to a record of $7.614 trillion. In September month-to-date through 9/10, total money fund assets have increased by $70.1 billion to a record $7.672 trillion, according to Crane Data's separate, and slightly smaller, MFI Daily series.)
Crane Data's September Money Fund Portfolio Holdings, with data as of Aug. 31, 2025, show that holdings of Repo plunged last month while Treasuries jumped. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $166.6 billion to $7.539 trillion in August, after increasing $17.6 billion in July, $84.0 billion in June and $72.0 billion in May. They decreased by $73.8 billion in April. Assets rose by $45.6 billion in March, $53.7 billion in February, $84.1 billion in January and $88.0 billion in December. Treasuries, the largest portfolio composition segment, increased by $414.3 billion. Repo, the second largest segment, decreased $236.2 billion in August. Agencies were the third largest segment, and CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our Money Fund Portfolio Holdings statistics. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)
Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Wednesday, and we'll be writing our regular monthly update on the new September data for Thursday's News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings on Tuesday. (We continue to merge the two series, and the N-MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of August 31, includes holdings information from 988 money funds (down 1 from last month), representing assets of $7.701 trillion (up from $7.530 trillion a month ago). Prime MMFs rose to $1.193 trillion (up from $1.182 trillion), or 15.5% of the total. We review the new N-MFP data and we also look at our revised MMF expense data, which shows charged expenses were mostly flat and money fund revenues rose to $20.1 billion (annualized) in August.
Crane Data's latest monthly Money Fund Market Share rankings show assets sharply higher among the largest U.S. money fund complexes in August after also being higher in July. Assets have increased in 13 of the past 14 months (only April 2025 saw a decline). Money market fund assets rose by $129.9 billion, or 1.7%, last month to a record $7.603 trillion. Total MMF assets have increased by $188.9 billion, or 2.5%, over the past 3 months, and they've increased by $982.0 billion, or 14.8%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Fidelity, JPMorgan, Vanguard, BlackRock and First American, which grew assets by $25.8 billion, $25.5B, $15.7B, $13.7B and $10.0B, respectively. Declines in August were seen by Invesco, Goldman Sachs, Morgan Stanley, American Funds and SSIM, which decreased by $7.2 billion, $5.5B, $2.4B, $1.9B and $842M, respectively. Our domestic U.S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product. The combined "Family & Global Rankings" are available to Money Fund Wisdom subscribers. We review the latest market share totals, and look at money fund yields, which were flat to slightly lower in August. (Note: With just under 2 weeks to go, register ASAP for our European Money Fund Symposium, which is Sept. 22-23, 2025 in Dublin!)
The September issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Monday morning, features the articles: "Money Fund Assets Blow Past $7.5 Trillion; on Way to $8.0?," which reviews the latest surge in MMF assets; "BNY Dreyfus, Goldman Both Launch Stablecoin Reserves," which quotes from new filings for Stablecoin Reserves money funds; and, "JPM on Offshore MMFs; European MFs Record $1.5T," which covers a recent update on money funds in Ireland. We also sent out our MFI XLS spreadsheet Monday a.m., and we've updated our Money Fund Wisdom database with 8/31/25 data. Our September Money Fund Portfolio Holdings are scheduled to ship on Wednesday, Sept. 10, and our September Bond Fund Intelligence is scheduled to go out on Monday, Sept. 15.
The Investment Company Institute released its latest weekly "Money Market Fund Assets" report Thursday, which shows money fund assets rising $52.4 billion to a record $7.259 trillion. MMFs rose $17.2 billion last week, $3.8 billion the week before and $33.3 billion 3 weeks ago. MMF assets are up by $959 billion, or 15.2%, over the past 52 weeks (through 9/3/25), with Institutional MMFs up $548 billion, or 14.6% and Retail MMFs up $411 billion, or 16.1%. Year-to-date, MMF assets are up by $409 billion, or 6.0%, with Institutional MMFs up $180 billion, or 4.4% and Retail MMFs up $229 billion, or 8.4%. (Note: Register soon for our European Money Fund Symposium, which takes place Sept. 22-23 in Dublin, Ireland!)
Money market mutual fund assets broke the $7.6 trillion level on Friday for the first time ever, and they hit a record $7.633 trillion on Tuesday (9/3), according to Crane Data's Money Fund Intelligence Daily. Assets jumped by $30.7 billion on Tuesday, Sept. 2, after surging by $132.0B in August. Year-to-date, money fund assets have increased by $459.3 billion (6.4%), and over the past year assets have increased by $1.018 trillion, or 15.4%. MMF asset totals first crossed the $7.0 trillion threshold last November, and they've since marked a series of new highs: $7.1 trillion on December 3, $7.2 trillion on January 2, $7.3 trillion on February 26, $7.4 trillion on May 30, $7.5 trillion on August 4, and $7.6 trillion on August 29. (Note: With just under 3 weeks to go, register ASAP for our European Money Fund Symposium, which is Sept. 22-23, 2025 in Dublin!)
Bloomberg writes, "America Inc. Swaps Decades for Days in Rush to Commercial Paper," which explains, "Once a $2 trillion cornerstone of global finance, the US commercial paper market was left in disarray following the 2008 crisis. Now, after years in the shadows, it's staging an unexpected comeback. Uber Technologies Inc. rolled out a $2 billion commercial paper plan in June, according to its latest quarterly filing. That followed Netflix Inc.'s $3 billion facility a month earlier. Coca-Cola Co., PepsiCo Inc., Philip Morris International Inc. and Honeywell International Inc. have all tapped the market in recent months, selling billions worth of the short-term IOUs, which typically range in maturity from 30 to 90 days." (Note: With just under 3 weeks to go, register ASAP for our European Money Fund Symposium, which is Sept. 22-23, 2025 in Dublin!)
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