Tax-exempt money market funds lost $5.09 billion during the week ending April 28, causing total assets to fall to $489.6 billion, according to the Money Fund Report, a service of imoneynet.com of Westborough, Mass.

The outflows were noticeably lower than the $7.27 billion the funds lost the previous week, when total assets fell to $494.7 billion from $501.9 billion.

A day before the Federal Open Market Committee cut the target federal funds rate by 25 basis points, the 549 tax-exempt funds in the report this week saw the average seven-day yield rise by 31 basis points to 1.95% from 1.64% the previous week, although the average maturity remained unchanged at 25 days.

Meanwhile, the 1,287 taxable mutual funds lost a whopping $29.4 billion to settle at $2.92 trillion for the week ending April 29, compared with last week when they gained $8.90 billion and had $2.95 trillion in total assets.

Overall, the 1,836 money market funds in the report this week lost a combined $34.5 billion, causing total assets to drop significantly to $3.41 trillion from $3.45 trillion the week before.

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