For the second week in a row, tax-free money market funds showed signs of slow but steady recovery, demonstrated by the arrival of $6.12 billion in new cash, which caused assets to inch up to $490.86 billion for the week ending Oct. 13, according to the Money Fund Report, a service of iMoneyNet.com.

The continued rebound came on the heels of $4.90 billion of inflows last week, which brought total assets to $484.74 billion after the market was buoyed by the Federal Reserve Board joining central banks around the world to lower interest rates last Wednesday. It marked the first time the tax-exempt money funds had seen positive inflows in nearly a month as a result of the nation's ongoing fiscal turmoil.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.