Tax-Free Outflows Slow to $4.56 Billion

Outflows from tax-free money market funds slowed to $4.56 billion for the week ending Feb. 2, settling at $488.8 billion, according to the Money Fund Report, a service of iMoneyNet.com.

The losses were less than the previous period, when tax-free funds saw their assets decline $7.69 billion to $493.41 billion for the week ending Jan. 26.

In addition, the seven-day yield for the 511 tax-free funds inched up slightly to 0.32% from last week's all-time low of 0.29%, while the average maturity remained unchanged at 27 days, according to the report.

The activity came on the heels of the decision last week by the Federal Open Market Committee to keep the target federal funds rate in a range between zero and 0.25%.

Meanwhile, the 1,221 taxable funds in the report saw $3.26 billion of outflows to settle at $3.337 trillion in total assets for the week ending Feb. 3. That followed a huge increase of $21.08 billion to $3.340 trillion the previous week. The seven-day yield for taxable money market funds again dropped to an all-time low of 0.43% from last week's 0.48%.

Overall, the combined assets of the 1,732 funds in the report fell $7.82 billion to $3.826 trillion, down from last week's $13.39 billion increase to $3.834 trillion.

 

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