Tax-free money market funds gained nearly $10 billion during the week ending May 5, recouping twice the $5 billion-plus they lost in the previous week, according to the Money Fund Report, a service of Westborough, Mass.-based imoneynet.com.
The 549 tax-free funds in the report gained $9.98 billion, which swelled total assets to $499.5 billion in the latest week, versus $5.09 billion in outflows the previous week that left them at $489.6 billion.
The average seven-day yield for the tax-exempt funds rose 18 basis points to 2.13% from 1.95%, while the average maturity shortened by one day to 24 days from 25 days.
Meanwhile, the 1,286 taxable money market funds gained $12.5 billion for the week ending May 6, settling at $2.93 trillion - a significant reversal compared to the previous week, when the funds lost a whopping $29.4 billion and saw total assets drop to $2.92 trillion.
Overall, the 1,835 money market funds in the report gained $22.48 billion, which pumped total assets to $3.43 trillion, up significantly from previous week's $3.41 trillion haul.
