Money Market Funds Reverse, Falling $5.33B

After slight inflows last week, tax-exempt money market funds fell by $5.33 billion and settled at $437.36 billion for the week ending Sept. 14, according to the Money Fund Report, a service of iMoneyNet.com. The drop coincided with the Sept. 15 corporate tax deadline.

Inflows of $1.29 billion for the week ending Sept. 7 caused tax-exempt money funds to settle at $442.70 billion.

The average seven-day yield this week reached a new record low, dipping two basis points to 0.05% versus 0.07% the previous week for the 507 tax-exempt funds in the report. The average maturity declined by one day to 33 days.

In the taxable market, $49.90 billion of outflows caused the 1,181 funds in the report to settle at $3.009 trillion, while the seven-day average yield remained at a record low of 0.06% for the fourth week in a row. Taxable money fund assets fell by $4.51 billion to $3.059 trillion for the week ending Sept. 8.

Overall, the combined assets of the 1,688 funds in the report fell by $55.23 billion to $3.446 trillion for the week ending Sept. 15. Last week, the combined assets of all the money funds fell by $3.21 billion and finished at $3.501 trillion for the week ending Sept. 8.

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