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US money market fund assets rose for a sixth consecutive week, bringing the total to a fresh nine-plus year peak as investors piled cash into low-risk funds on concerns about global trade tensions, a private report released on Wednesday showed. US money fund assets grew by $10.08 billion to $3.121 trillion in the week ended June 4, the Money Fund Report said.
During this six-week stretch, total fund assets increased by $111 billion. US President Donald Trump said on Wednesday he thinks Mexico wants to make a deal in the neighbors' immigration dispute, but that he will go ahead with tariffs on Mexican goods if it does not do more to control migration.
Taxable money market fund assets climbed by $11.53 billion to $2.985 trillion, while tax-free assets declined by $1.45 billion to $136.13 billion, according to the report, published by iMoneyNet. The iMoneyNet average seven-day simple yield for taxable money funds rose to 2.04% from a five-month low of 2.02% last week. The weighted average maturity among taxable funds increased to 30 days from 29 days. The iMoneyNet average seven-day yield for tax-free and municipal funds jumped to 1.11% from 0.99%, which was the lowest since late January. The weighted average maturity of tax-free funds was unchanged at 22 days.

Copyright Reuters, 2019

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