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NEW YORK, Feb 6 (Reuters) - U.S. money market fund assets rose in the latest week, reversing the prior week’s drop as higher yields likely inspired investors to put more cash into the sector, according to the Money Fund Report released on Wednesday.
Yields on some money funds are running above those of short- and medium-term Treasuries.
Money fund assets increased by $12.41 billion to $3.019 trillion in the week ended Feb. 5, following a $8.40 billion decline the previous week.
A month ago, fund assets reached $3.029 trillion, which was the highest since March 2010. They have held above $3 trillion for five straight weeks.
Taxable money market fund assets rose $13.71 billion to $2.878 trillion, while tax-free assets fell $1.30 billion to $141.19 billion, according to the report, published by iMoneyNet.
iMoneyNet said the average seven-day yield on taxable money funds climbed to 2.06 percent from 2.04 percent last week, while the seven-day yield on tax-free money funds rose to 1.04 percent from 0.91 percent the week before.
In the latest week, the DWS ESG Liquidity Fund offered the highest seven-day yield at 2.65 percent, which was highest among the money funds iMoneyNet monitors.
The yield on two-year Treasury notes was 2.520 percent and the yield on five-year Treasuries was 2.502 percent in late trading on Wednesday.
Reporting by Richard Leong Editing by Tom Brown