Money Market Funds Continue Record Levels

Asset levels in municipal money market funds have reached record levels for the last eight consecutive weeks. That’s the news this week as the muni funds experienced inflows of $3.03 billion for the week ending Nov. 26.The increase in assets has accelerated after a slow start to October and puts total assets in tax-free money market funds at $456.78 billion, according to the Money Fund Report. The report monitors 550 funds.Average seven-day yields over the same period were 3.04%, up four basis points from the week before and up 11 basis points from two weeks ago. The average maturity is 31 days, an increase of one day compared to the week that ended Nov. 19. This week’s data continues the trend set during the previous week but at a slower pace. Two weeks ago, tax-free money funds had inflows of over $9 billion. Taxable funds had inflows of $31.46 billion, putting total net assets at $2.563 trillion, also a record level. The combined total is $3.031 trillion of assets under management.