After four straight weeks of significant inflow activity and record-high asset levels, municipal bond money market funds experienced outflows in the week ending June 2, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.
The 550 tax-free and municipal funds included in the report this week fell $7.21 billion to $513.7 billion. Last week, the funds took in $1.35 billion, surging to an all-time high of $520.9 billion.
The average seven-day yield on the tax-free funds dropped six basis points to 1.31% from 1.37% for the period.
Meanwhile, the 1,294 taxable money market funds rose by $11.35 billion to settle at $2.97 trillion for the week ending June 3, compared with last week when they lost $4.32 billion and ended up at $2.95 trillion, according to the report.
Overall, the 1,844 money market funds grew by $4.13 billion during the week, climbing to $3.484 trillion, after assets dipped $2.96 billion to $3.480 trillion last week.