US money market assets tumble for tax payments

Investors and companies withdrew huge sums of cash from their money market accounts to make their annual tax payments ahead of the April 15th deadline, according to a private report released on Wednesday. Domestic money market fund assets tumbled by $53.19 billion, which was their biggest weekly decline in about 10 months to $3.016 trillion in the week ended April 16, the Money Fund Report said.

“The decline was driven primarily by personal and corporate tax deadlines,” it said in a statement. Total money fund assets were below a nine-year high of $3.071 trillion set in March. Taxable money market fund assets decreased by $48.01 billion to $2.883 trillion, while tax-free assets fell by $5.18 billion to $133.84 billion, according to the report, published by iMoneyNet.

The average seven-day simple yield on taxable money-market funds was unchanged at 2.06%. The weighted average maturities (WAM) of taxable money funds increased by one day to 31 days, iMoneyNet said. The average seven-day simple yield on tax-free and municipal money funds climbed to 1.16% from 1.09% the week before. The WAM on tax-free funds was unchanged at 25 days.