US Rates Watch: MMF update: July outflows, WAMs shorter

研报英文原文证据摘录

US Rates Watch: MMF update: July outflows, WAMs shorter

n in late June after extending 8 days since the start of ’26.

FICC: Fixed Income Clearing Corp

Uncertainty around the Fed’s path has likely been the primary driver of shorter WAMs in FOMC: Federal Open Market Committee

recent weeks as the market swings from pricing reasonable risk of a Fed hike at the July GC: General Collateral

FOMC meeting to only ~5bps currently. MMFs are likely choosing to stay short to Gov't: Government

preserve optionality with cash largely moving into repo and FRNs. Inst’l: institutional

MMF: Money market fund

MMF WALs have also declined but to a lesser extent vs WAM. This is likely due to a shift ME: Month-end

towards more floating-rate instruments. With floaters, WAM measures the time until the ON RRP: Overnight reverse repo facility

next interest-rate reset vs WAL measures time until final maturity. The potential shift QT: Quantitative tightening

into floaters in July is likely to take advantage of the rate reset given risk of Fed hikes. QTD: Quarter to date

Yields have been stable with Fed on pause RR:TD: ReverseTime depositrepo

MMF 7-day simple yield is little changed MoM, according to iMoneyNet data. The 7d UST: US Treasury

simple yield is currently 3.34% for gov’t funds and 3.41% for prime, for a spread of 7bps WAL: Weighted average life

(Exhibit 7). At current levels, interest income likely contributes roughly $23b/mo in AUM WAMs: Weighted average maturity

growth. MMF yields will likely rise quickly alongside Fed hikes. BofA base case is for the WLA: Weekly liquid assets

Fed to hike 75bp in ’26 vs market pricing of 39bp. YTD: Year to date

BNY- Bank of New York

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