After a storm of unusually high outflows plagued the money market industry last week, investors who weathered the storm in the Northeast returned to the market with cash this week.
Tax-exempt money market funds gained $2.78 billion of new cash as total net assets rose to $268.42 billion in the week ended Nov. 5, according to The Money Fund Report, a service of iMoneyNet.com.
The inflows came just a week after many skittish investors withdrew $1.10 billion in preparation for Hurricane Sandy in the Northeast, causing total net assets to decline to $265.65 billion.
This week, the average, seven-day simple yield for the 441 reporting tax-exempt funds remained at 0.01% for the 23rd week in a row, while the average maturity decreased by two days to 36 days.
The total net assets of the 1,055 taxable reporting money funds gained $45.53 billion in the week ended Nov. 6 and settled at $2.287 trillion. The inflows nearly recovered the whopping $50.03 billion that wary investors withdrew in the prior week, leaving total net assets at $2.242 trillion as Hurricane Sandy whipped through the Northeast.
The average, seven-day simple yield for the taxable funds rose by one basis point to 0.03% from 0.02%, while the average maturity declined by one day to 49 days compared to the prior week.
Overall, the combined assets of the 1,496 reporting money funds accumulated $48.31 billion of inflows as total net assets increased to $2.556 trillion in the week ended Nov. 6. That compares to the previous week when $51.13 billion of outflows caused total net assets to decrease to $2.507 trillion.