Tax-exempt money market funds continued their downward trend for a second week as $1.26 billion exited the industry and total net assets settled at $263.66 billion in the week ended Oct. 21, according to The Money Fund Report, a service of iMoneyNet.com.

In the prior week, the funds lost $973.2 million as total net assets decreased to $264.92 billion. New cash totaling $2.74 billion had arrived in the week ended Oct. 7 -- the first inflow in four weeks -- as total net assets rose to $265.90 billion.

The average, seven-day simple yield for the 420 weekly reporting tax-exempt money funds remained at 0.01%, while the average maturity was unchanged at 42 days.

Among the 1,020 taxable reporting money funds, inflows of $35.90 billion catapulted total net assets to $2.377 trillion in the week ended Oct. 22, which compares to the prior week when $43.80 billion of outflows caused total net assets to decline to $2.341 trillion.

The average, seven-day simple yield for the taxable funds was unchanged at 0.01%, while the average maturity increased two days to 48 days compared to the prior week.

The combined total net assets of the 1,440 weekly reporting money funds rose by $34.64 billion to $2.640 trillion. That compares to the previous week when total net assets settled at $2.606 trillion following the exit of $44.77 billion.

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