Money Market Funds Shed Cash Last Week

Both tax-exempt and taxable money market funds lost cash in the weeks ending Nov. 1 and 2. Tax-exempt funds saw noticeably trimmed outflows compared with last week, while the taxable losses are in stark contrast to the previous week's short-lived period of inflows.

According to the Money Fund Report, a service of iMoneyNet. com, the 487-reporting tax-exempt money market funds lost $361.2 million — significantly less than the $1.25 billion in losses the week before. The losses caused the funds to settle with assets of $326.37 billion for the week ending Nov. 1. The funds had $326.73 billion in total net assets in the week ending Oct. 25.

The iMoneyNet money fund average seven-day simple yield for all tax-exempt money funds remained at 0.04% for a second consecutive week, while the average maturity was unchanged at 33 days.

Among the 1,145 taxable funds, total net assets declined by $15.35 billion, leaving the funds at $2.442 trillion for the week ending Nov. 2. That compares with the gain of $25.34 billion the week before, when the funds finished with $2.456 trillion in total net assets.

The iMoneyNet money fund average, yield for the taxable funds was unchanged at 0.03%, while the average maturity remained at 47 days.

Overall, the combined assets of the 1,632 reporting money funds this past week saw a reversal of the inflows they accumulated the week earlier when they dipped by $15.71 billion. Funds had $2.768 trillion in assets in the week ending Nov. 2. That compares with inflows of $24.09 billion in the previous week, when the money funds ended with $2.783 trillion in total net assets.

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