NEW YORK (Reuters) - U.S. money market fund assets posted their steepest weekly decline in more than two years as companies filed their quarterly federal taxes and investors paid for $66 billion in Treasury securities, the Money Fund Report said on Wednesday.
Money funds, which companies use as alternatives to bank accounts to manage their cash, saw $65.25 billion in outflows leaving a balance of $2.762 trillion in the week ended June 19, according to the report, published by iMoneyNet.
This was the biggest decline since $62.52 billion in outflows in the week of April 5, 2016, marking the fifth largest decrease since iMoneyNet began tracking this data.
The drawdown in money fund assets likely stemmed from two factors: corporate tax receipts and investor payment on Treasury supply, analysts said.
Last week, corporations were sending cash to the government ahead of the quarterly tax deadline. On June 15, the Treasury said it received $26.0 billion in corporate taxes, compared with $42.2 billion a year earlier.
Moreover, the Treasury raised about $43 billion in new cash as investors settled on what they bought at last week’s Treasury auctions which included $68 billion worth of three-year, 10-year and 30-year debt.
Reporting by Richard Leong; Editing by Lisa Shumaker