Tax-exempt money market funds saw inflows of $3.19 billion for the week ending Jan. 12, settling at $503.24 billion in total assets, according to the Money Fund Report. The total was slightly higher than the previous week, which saw inflows of $8.23 billion and settled at $500.05 billion.
The 514 tax-free funds saw the average seven-day yield drop to 0.41% from 0.71% - the lowest level since March 15, 2004, according to the report, a service of iMoneyNet.com of Westborough, Mass. The average maturity remained unchanged at 28 days.
Meanwhile, the 1,235 taxable funds gained inflows of $40.19 billion and saw their total assets rise to $3.346 trillion for the week ending Jan. 13, surpassing the record high set the week before. The average seven-day yield on the taxable funds also dropped, falling 10 basis points to 0.60%.
Combined, total money market fund assets added $43.38 billion to reach a record high of $3.849 trillion for the week ending Jan. 13.
In other segments of the short-term market, the yields on daily variable-rate demand obligations also dropped slightly to 0.47%% yesterday from 0.59% last week, while the yields on weekly VRDOs fell to 0.78% from 1.04%, according to Municipal Market Data.