After a short-lived period of inflows, tax-free money market funds declined by $124.8 million for the week ending May 25, and settled at $469.02 billion in total assets — after two prior weeks of positive cash-flow activity, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.
Last week, tax-free money market funds gained $479.9 million and settled at $469.14 billion in total assets for the week ending May 18, following inflows of $742.9 million, which caused total funds to settle at $468.67 billion for the week ending May 11.
This week, the average seven-day, simple yield for the 506 tax-free money market funds remained unchanged at 0.26%, while the average maturity was also unchanged at 23 days.
Meanwhile, taxable money fund assets increased by $11.44 billion to settle at $3.254 trillion for the week ending May 26. At the same time, the yield of the 1,201 taxable money market funds in the report dropped one basis point to an all-time low of 0.16% while the federal funds target rate remains at between zero and 25%. Last week, the assets of taxable money market funds decreased by $20.93 billion and ended at $3.24 trillion for the week ending May 19.
Overall, the combined assets of the 1,707 money market funds grew to $3.723 trillion after gaining $11.31 billion for the week ending May 26, on the heels of $20.45 billion of outflows last week when the funds closed at $3.712 trillion in assets for the week ending May 19.