Municipal money market funds continue on a roll in 2008 reaching record assets under management with inflows of $2.468 billion for the week ending Jan 14.

The increase in assets puts the total in tax-free money market funds at $482.899 billion, according to the Money Fund Report. This is the second week in a row of assets, but a slight decline of inflows from last week, which saw more than $10 billion enter these investments. The report monitors 551 funds.

Average seven-day yields over the same period were 2.58%, down 30 basis points from the week that ended Dec. 31 and down 51 basis points from last month.

The average maturity is 29 days, the same as the week before.

This week’s data continues a reversal on tax-exempt money market fund flows as the end of 2007 brought a string of outflows. Prior to these ups and downs, the funds saw 10 consecutive weeks of inflows, with each week setting a new record for assets in the middle of the fourth quarter of 2007. The report attributes the most recent inflows to start of the year reinvestment.

Taxable funds had inflows of $13.489 billion, putting total net assets at $2.682 trillion. The combined total is $3.165 trillion of assets under management.


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