Tax-Exempt Money Market Funds Lose $2.38 Billion, Settle at $284.4B

Investors withdrew $2.38 billion of cash from tax-exempt money market funds in the week ended Oct. 31 in what marked the third consecutive week of significant outflows, according to the Money Fund Report, a service of iMoneyNet.com.

As a result of the outflows this week, tax-exempt funds ended with $284.41 billion.

That compares to losses of $1.31 billion in the previous week when they finished with $286.7 billion, and the $2.50 billion of losses in the week ended Oct. 17, when total net assets dropped to $288.10 billion.

Tax-exempt funds saw inflows in the week ended Oct. 10 with the arrival of $2.09 billion. That ended a previous five-week trend of outflows and caused total net assets to rise to $290.61 billion.

The average, seven-day simple yield for the 472 tax-exempt reporting funds remained at 0.01% for the ninth week in a row, while the average maturity decreased to 33 days from 34 days.

The 1,120 taxable money market funds, meanwhile, declined by a whopping $27.82 billion and ended the week of Nov. 1 with assets of $2.297 trillion. The week before, they gained $5.47 billion and total net assets rose to $2.32 trillion.

The average, seven-day simple yield for the taxable funds stayed at 0.02% for the 14th consecutive week, while the average maturity was unchanged at 42 days.

Overall, the combined assets of the 1,592 reporting money funds fell by $30.20 billion and ended the week of Nov. 1 with total net assets of $2.581 trillion, compared to a $4.16 billion increase the previous week that brought total net assets to $2.611 trillion.

For reprint and licensing requests for this article, click here.
Buy side
MORE FROM BOND BUYER