Tax-free money market funds’ average yield fell 22 basis points to 2.92% on an annualized basis during the week ending Monday, iMoneyNet Inc. reported.
The move followed a four-basis-point increase in the average yield during the previous week, according to the Westborough, Mass.-based fund tracker.
Meanwhile, assets in the funds rose $2.46 billion to $361.06 billion. The increase was driven by retail funds, which had a net inflow of $3.5 billion. Those gains were offset by a $1.04 billion outflow from institutional funds. During the previous week, the funds had a $2.97 billion net inflow overall.
Tax-free funds’ average maturity rose by one day during the latest week to 27 days.
Assets in taxable funds rose $16.72 billion during the week ending Tuesday to $1.852 trillion. Institutional taxable funds had a net inflow of $9.72 billion during the week, while retail funds took in an additional $7 billion. The results followed a net inflow of $19.17 billion into the funds during the previous week.
The average taxable fund yield held steady at 4.72% during the week, after falling one basis point the week before.
