May 15, 2019 / 8:12 PM / in 5 days

U.S. money market assets rise for three weeks -iMoneyNet

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    May 15 (Reuters) - U.S. money market fund assets increased
for a third straight week amid worries about slowing economic
growth and renewed trade tension between China and the United
States, a private report released on Wednesday showed.
            
    Investors preferred to put more cash into tax-free money
funds in the latest week over taxable ones despite their lower
yields, the Money Fund Report said on Wednesday.
    Taxable money fund yields, meanwhile, are comparable to
those on U.S. Treasuries with less interest rate risks, analysts
said.
    "It's not that expensive to hold cash right now as an
opportunity or as a defense," said Cliff Corso, executive
chairman of Insight Investment in New York. "Cash is not trash."
    The yield on two-year Treasury notes            was 2.164%
late on Wednesday.
    Total money fund assets increased $2.67 billion to $3.052
trillion in the week ended May 14, according to the report,
published by iMoneyNet.
    Taxable money market fund assets slipped by $833.60 million
to $2.912 trillion, while tax-free assets increased by $3.50
billion to $139.93 billion.
    The iMoneyNet average seven-day simple yield for taxable
money funds was 2.04%, the lowest in three months and down from
2.06% last week. The weighted average maturity among taxable
funds was unchanged at 30 days. 
    The iMoneyNet average seven-day yield for tax-free and
municipal dropped to 1.23%, the lowest in four weeks, from 1.59%
the week before. The weighted average maturity of tax-free funds
remained at 22 days.

    
 (Reporting by Richard Leong
Editing by Susan Thomas)
  
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