Tax-Exempt MMFs Gain $480M to $469B

For a second week in a row, the assets of tax-exempt money market funds increased, gaining $479.9 million to $469.14 billion for the week ending May 18, according to the Money Fund Report, a service of iMoneyNet.com.

Tax-exempt funds grew $742.9 million and settled at $468.67 billion for the week ending May 11.

Meanwhile, the seven-day, simple yield for the 506 tax-exempt money funds slipped from 0.29% to a record low of 0.26%, while the average maturity declined by one day to 23 days compared to last week.

Taxable fund assets decreased by $20.93 billion to $3.24 trillion for the week ending May 19, after inflows of $1.43 billion to $3.263 trillion for the week ending May 12.

The seven-day, simple yield for all taxable funds declined to an all-time low of 0.17% while the federal funds target rate remains between zero and 0.25%.

The combined assets of the 1,707 funds in the report declined by $20.45 billion to settle at $3.711 trillion for the week ending May 19, according to the report. All money funds gained inflows of $2.17 billion and settled at $3.732 trillion for the week ending May 12.

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