Tax-free money market funds gained inflows of just $1.30 billion during the week ending Aug. 18, but that didn't stop the asset class from setting a record for total assets for the third week in a row, increasing to $528.36 billion, according to the Money Fund Report, a service of iMoneyNet.com of Westborough, Mass.
By comparison, last week the funds gained $5.69 billion, spiking total assets to a record $527.06 billion.
This week, the average, seven-day yield for the 554 tax-exempt and municipal funds declined by 18 basis points to 1.21% from 1.39%, according to the report. The average maturity remained unchanged at 27 days.
Meanwhile, the 1,305 taxable funds dropped by $1.10 billion in assets to $2.989 trillion during the week ending Aug. 19, after rising by $16.74 billion and settling at a record high of $2.99 trillion in assets the prior week.Â
All combined, the total assets of the 1,859 money market funds increased by just $198.6 million to a record high of $3.518 trillion - only slightly higher than last week's record of $3.517 trillion when the funds soared by $22.43 billion, the report said.