Money fund assets drop to $2.708T in latest week

[June 17, 2011]  NEW YORK (AP) -- Total money market mutual fund assets fell $34.37 billion to $2.708 trillion for the week ended Wednesday, the Investment Company Institute said Thursday.

Assets of the nation's retail money market mutual funds rose $3.04 billion to $916.31 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category rose $3.21 billion to $718.65 billion. Tax-exempt fund assets fell $160 million to $197.67 billion.

Assets of institutional money market funds fell $37.41 billion to $1.791 trillion for the same period. Among institutional funds, taxable money market fund assets dropped $36.30 billion to $1.682 trillion; assets of tax-exempt funds fell $1.11 billion to $109.33 billion.

The seven-day average yield on money market mutual funds was unchanged in the week ended Tuesday from the previous week at 0.02 percent, said Money Fund Report, a service of iMoneyNet Inc. in Westboro, Mass. The 30-day average yield was also unchanged at 0.02 percent.

The seven-day compounded yield remained at 0.02 percent, while the 30-day compounded yield was also unchanged at 0.02 percent, Money Fund Report said. The average maturity of the portfolios held by money funds was steady at 44 days.

The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts fell in the week ended Wednesday to 0.16 percent from 0.17 percent the previous week.

The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percsentage yield available on interest-bearing checking was 0.07 percent, unchanged.

Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged at 0.27 percent. Yields fell to 0.44 percent from 0.45 percent on one-year CDs, were unchanged at 0.72 percent on 2 1/2-year CDs and fell to 1.68 percent from 1.69 percent on five-year CDs.

[Associated Press]

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