Muni Money Funds Continue Downward Slide

Outflows of $3.43 billion continued to whittle down tax-free money market funds in the week ended Jan. 28 as total net assets settled at $282.68 billion after the third steady week of losses, according to The Money Fund Report, a service of iMoneyNet.com.

The outflows mirrored last week, when a net $2.44 billion fled the industry and total net assets settled at $286.11 billion. A whopping $4.21 billion exited the funds in the week ended Jan. 14 when total net assets settled at $288.55 billion.

The average, seven-day simple yield for the 431 tax-exempt reporting money funds was unchanged at 0.01% from the prior week, while the average maturity decreased by one day to 32 days.

In the taxable arena, the total net assets of the 1,039 money funds swelled by $12.43 billion to $2.397 trillion in the week ended Jan. 29, which nearly fully compensated for the $12.85 billion the funds lost in the prior week when total net assets settled at $2.384 trillion.

The average, seven-day simple yield for the taxable money funds remained at 0.02% from the prior week, while the average maturity fell by one day to 47 days.

Overall, the combined assets of the 1,470 reporting money funds rose by $9 billion in the week ended Jan. 29 to $2.679 trillion. That compares to the prior week when assets fell by $15.29 billion and settled at $2.670 trillion.

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