(Adds details from latest data)
NEW YORK, April 11 (Reuters) – U.S. money market fund assets
fell for a sixth consecutive week by $2.15 billion to $2.564
trillion in the week ended April 10, the Money Fund Report said
on Wednesday.
The total assets of U.S. money funds shrank to a fresh
eight-month low. They were still above $2.527 trillion in the
week ended Aug. 2, 2011.
Investors have reduced their money fund holdings in favor
higher-yielding corporate bond funds, analysts said.
In the week ended April 4, taxable bond fund assets grew
$9.092 billion, raising its year-to-date increase to $86.413
billion, the Investment Company Institute said on Wednesday.
Some of them also pared their money fund exposure in
anticipation of more regulatory changes for the industry and
possible ratings downgrades of global banks and financial
companies from Moody’s Investors Services in May, they said.
If Moody’s were to downgrade these companies’ short-term
credit ratings, some money funds that hold their debt could be
forced to sell it, analysts said.
Taxable money market fund assets fell by $2.75 billion to
$2.28 trillion, while tax-free assets were down by $600.6
million to $283.94 billion, according to the report, published
by iMoneyNet.
Yields on taxable money market funds remained at 0.03
percent for the 10th week, according to the report.
Yields on tax-free and municipal funds increased to 0.02
percent, ending a 31-week run at 0.01 percent.
(Reporting by Richard Leong and Angela Moon; Editing by Jan
Paschal)
