US money market fund assets fell this week, retreating from their highest level since October 2009, suggesting a pause in investors piling into these low-risk products amid trade and economic worries, a private survey released on Wednesday showed. Assets of money funds, which are seen nearly as safe as bank accounts, decreased by $12.24 billion to $3.316 trillion in the week ended August 27, the Money Fund Report said on Wednesday.
This reduced the year-to-date increase in money fund assets to $345 billion.
Taxable money market fund assets declined by $11.30 billion to $3.181 trillion, while tax-free fund assets fell by $940.00 million to $134.75 billion, according to the report, published by iMoneyNet.
The Fed cut interest rates for the first time since 2008 in July. The iMoneyNet average seven-day simple yield for taxable money funds slipped to 1.75%, the lowest level since October, from 1.79% the previous week. The weighted average maturity among taxable funds lengthened by one day to 31 days.
The iMoneyNet average seven-day yield for tax-free and municipal funds edged up to 0.97% from 0.96%. The weighted average maturity of tax-free funds increased three days to 32 days.