Outflows Bring Money Market Funds to $401.29 Billion

Outflows to the tune of $948.2 million caused tax-exempt money market funds to end the week of Jan. 11 with total assets of $401.29 billion, after starting 2010 the previous week with inflows of nearly $3 billion, according to the Money Fund Report, a service of iMoneyNet.com.

The outflows came on the heels of $2.60 billion of inflows for tax-exempt funds, which led to total assets of $402.24 billion for the week ending Jan. 4.

This week, the average seven-day simple yield for the 499 tax-free money market funds slipped by two basis points to a new record low of 0.02%, compared with the previous week when it was 0.04%. The previous record low of 0.03% was set on Dec. 7. The average maturity remained unchanged at 30 days.

In the taxable market, meanwhile, the assets of the 1,168 funds in the report fell by $18.21 billion and settled at $2.85 trillion in total assets for the week ending Jan. 12. For the week ending Jan. 5, taxable money market funds rose by $6.86 billion and settled with total assets of $2.86 trillion.

The average seven-day simple yield for taxable money funds remained unchanged at 0.03%, where it has held steady since Nov. 24.

Overall, the combined assets of the 1,667 funds in the report lost $19.16 billion for the week ending Jan. 12 and ended with total assets of $3.25 trillion, compared with inflows of $9.46 billion for the week before, when the funds settled at $3.27 trillion.

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