The influx of cash into tax-free money market funds last week proved to be short-lived as assets fell $914.9 million to $309.04 billion for the week ended May 16, according to the Money Fund Report, a service of iMoneyNet.com.
That is in stark contrast to the previous week’s activity, which ended a trend of outflows when a hefty $3.33 billion flowed into the money-fund industry and pushed total net assets to $309.95 billion for the week ended May 9.
It marked the single-largest inflow activity so far this year and was the first time the funds gained cash since picking up a modest $137.8 million in the week ended March 21, when assets finished at $322.2 billion.
This week the average seven-day simple yield for the 480 tax-exempt funds dipped to 0.02% from 0.03% the previous week, while the average maturity declined by one day to 24 days.
The assets of the 1,138 taxable funds in the report this week fell by $4.27 billion to $2.409 trillion for the week ended May 17, while the average maturity remained at 46 days.
Last week, taxable funds grew by $19.21 billion and finished with $2.413 trillion in assets for the week ended May 10.
The average yield for the taxable funds remained at 0.02% for the seventh week in a row, while the average maturity remained at 46 days.
Overall, the combined assets of all the money funds in the report fell by $5.18 billion for the week ended May 17 and finished with $2.718 trillion for the week ended May 17. That compares to inflows of $22.54 billion the previous week when the funds ended with total net assets of $2.723 trillion.
