With the seven-day simple yield on money market funds now a mere 50 basis points, investors are beginning to look for other places to park their money. In the latest week for which figures are available, investors pulled $7.82 billion out of money market funds, iMoneyNet reported.
That yield is the lowest since iMoneyNet began tracking money market funds in 1975. And that average yield is not expected to go higher as long as the Treasury keeps the target federal funds rate between zero and 25 basis points.
The total assets in money market funds now stand at $3.826 trillion. In the last week, taxable outflows were $3.26 billion, and tax-free funds lost $4.56 billion.