Yields Inch Back Down to 3.49%
Money fund yields (7-day, annualized, simple, net) were down 1 bp at 3.49% on average during the week ended Friday, August 7 (as measured by our Crane 100 Money Fund Index), after rising 3 bps the week prior. Fund yields have rebounded slightly in recent weeks, but 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 3.49% on 7/31/26, 3.47% on 6/30 and on 3/31, 3.58% on 12/31/25, 4.13% on 6/30/25 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 3.40%, unchanged in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.60% in the latest week. Government Inst MFs were unchanged at 3.48%. Treasury Inst MFs were down 1 bp at 3.47%. Treasury Retail MFs currently yield 3.24%, Government Retail MFs yield 3.21% and Prime Retail MFs yield 3.38%, Tax-exempt MF 7-day yields were down 42 bps to 1.61%. 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 increased $25.3 billion in the week through Friday, and they've increased by $38.2 billion in August month-to-date (through 8/7). MMF assets decreased by $61.4 billion in July, 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 last August. Weighted average maturities were at 38 days for the Crane MFA and 39 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (8/7), just 159 money funds (out of 834 total) yield under 3.0% with $193.4 billion in assets, or 2.3%, while the vast majority (675) of funds yield between 3.00% and 3.99% ($8.134 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 0.29%, after falling 1 bp eleven weeks prior. The latest Brokerage Sweep Intelligence, with data as of August 7, 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.
