Tax-free money market funds achieved record asset growth for the week ending March 31, gaining $3.78 billion, up significantly from last week's $1.26 billion, according to the Money Fund Report, a service of iMoneynet.com.
The 547 tax-free money market funds in the report set a new record by increasing to $493.36 billion in assets - a noticeable jump from the prior week's total assets of $489.58 billion, and surpassing the previous record of $492.05 billion set on Feb. 11.
The seven-day average yield for those funds decreased 21 basis points to 1.83% from 2.04%.
Meanwhile, taxable money market funds suffered outflows during the week ending April 1, losing $30.8 billion after seeing $52.32 billion in inflows the prior week, according to the report.
As a result of the outflows, the total assets of the 1,278 taxable funds dropped to $2.94 trillion from $2.97 trillion for the week ending March 25.
Overall, the 1,825 money market funds in the report saw outflows totaling $27.02 billion, causing total assets to drop to $3.43 trillion, down from the week before when they set a record of $3.46 trillion.
