Skip to main content

U.S. money market fund assets rose for three consecutive weeks to $3.071 trillion in the latest week, the highest level in nine years amid worries about slowing economic growth, a private report showed on Wednesday.

Economic concerns, together with uncertainty about U.S.-China trade and political developments overseas, have stoked the cash going into low-risk money funds since December.

Some fund managers cautioned against putting too much cash into money funds as stock prices have rebounded from their steep decline in late 2018.

Bonds have also stabilized with the possibility of greater gains if the Federal Reserve and other major central banks ease monetary policy to combat a business downturn.

“With this year’s trade, you have to be more balanced,” said Jim Caron, portfolio manager at Morgan Stanley Investment Management in New York.

Total money fund assets grew by $3.61-billion in the week ended March 12, less than the $30.72-billion increase the week before, the Money Fund Report said.

Taxable money market fund assets increased by $3.53-billion to $2.931-trillion, while tax-free assets increased by $72.60-million to $139.54-billion, according to the report, published by iMoneyNet.

The seven-day yields on taxable money-market funds averaged 2.06 per cent for a second week, while the seven-day yields on tax-free and municipal money funds fell to 1.24 per cent from 1.30 per cent last week.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe