Treasury-based money market funds continue to suffer from sustained low yields, and this time it's the AP
that's spotlighting the tough times. Mark Jewell reports
that, according to iMoneyNet
, the average yield for such funds is down to 20 basis points, below the 32 bps low reached in 2004. And that means investors and managers alike are feeling the pain.
The pain of treasury money funds isn't new, though. Earlier this month, the Wall Street Journal
reported on the closing of the Evergreen Institutional 100% Treasury Money Market Fund
and the Allegiant Treasury Money Market Fund
, December 11, 2008), and Vanguard
later closed the Admiral Treasury Money Market Fund
and the Treasury Money Market Fund
to new institutional investors (see MFWire
, December 17, 2008).
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