U.S. money market fund assets fell for a sixth consecutive week by $2.15 billion to $2.564 trillion in the week ended April 10, the Money Fund Report said on Wednesday.
The total assets of U.S. money funds shrank to a fresh eight-month low. They were still above $2.527 trillion in the week ended Aug. 2, 2011.
Investors have reduced their money fund holdings in favor higher-yielding corporate bond funds, analysts said.
In the week ended April 4, taxable bond fund assets grew $9.092 billion, raising its year-to-date increase to $86.413 billion, the Investment Company Institute said on Wednesday.
Some of them also pared their money fund exposure in anticipation of more regulatory changes for the industry and possible ratings downgrades of global banks and financial companies from Moody's Investors Services in May, they said.
If Moody's were to downgrade these companies' short-term credit ratings, some money funds that hold their debt could be forced to sell it, analysts said.
Taxable money market fund assets fell by $2.75 billion to $2.28 trillion, while tax-free assets were down by $600.6 million to $283.94 billion, according to the report, published by iMoneyNet.
Yields on taxable money market funds remained at 0.03 percent for the 10th week, according to the report.
Yields on tax-free and municipal funds increased to 0.02 percent, ending a 31-week run at 0.01 percent.
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