Assets in tax-free money market funds grew $3.37 billion to reach a record $334.67 billion during the week ended Monday, iMoneyNet Inc. reported.
Institutional funds led the way with a net inflow of $2.46 billion, while retail funds experienced a $916 million net inflow, according to data gathered by the Westborough, Mass.-based fund tracker. The gain in assets followed a net inflow of $2.47 billion the previous week, which was also primarily due to institutional funds.
The funds average weekly yield rose five basis points to 1.96% on an annualized basis. Due to rising variable rates, the yields for the funds spiked 28 basis points during the previous week.
The average taxable fund yield rose three basis points to 2.89% during the week ended Tuesday following a seven basis point increase in the prior week.
Assets in taxable funds rose $4.85 billion to $1.58 trillion during the most recent reporting period, as institutional funds grew by $1.37 billion and retail funds added about $3.48 billion. The results followed a $13.18 billion net inflow during the previous week, as the category experienced gains in both institutional and retail funds.
