Muni Money Funds Stumble Back to Negative

Tax-exempt money market funds saw an end to their short-lived period of inflows as $797.9 million fled the sector and total net assets declined to $303.27 billion in the week ended July 18, according to the Money Fund Report, a service of iMoneyNet.com.

The loss comes after inflows of $608.2 million and assets of $304.07 billion the previous week, and $1.39 billion of inflows and $303.46 billion of assets the week before.

The average, seven-day simple yield for the 477 tax-exempt money funds reporting this week remained at 0.01% — an all-time low — for the third week in row, while the average maturity was unchanged at 28 days.

Meanwhile, the assets of the 1,133 taxable money funds in the report dropped by $26.42 billion to $2.346 trillion for the week ended July 19, following last week’s $24.80 billion of inflows, which brought assets to $2.372 trillion.

The average, seven-day simple yield for the taxable funds remained at its all-time low of 0.01% for a second week straight, while the average maturity of 40 days was also unchanged.

Overall, the combined assets of the 1,610 reporting money market funds declined by $27.22 billion and settled with $2.649 trillion for the week ended July 19.

The previous week saw the funds end with inflows of $25.41 billion and assets of $2.676 trillion.

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