(Recasts with biggest weekly drop, add details, figures and
NEW YORK, March 22 U.S. money market fund assets
recorded their biggest weekly drop in two months following the
Federal Reserve's widely expected interest rate by a quarter
percentage point last week, the Money Fund Report said on
Money fund assets declined by $25.76 billion to $2.626
trillion in the week ended March 21, marking its biggest
decrease since $27.08 billion in the Jan. 17 week.
Taxable money market fund assets decreased by $25.78 billion
to $2.495 trillion, while tax-free assets increased by $18.10
million to $131.10 billion, according to the report, published
The week's outflow nearly all came from institutional
government money funds which lost $28.67 billion, falling to
$1.514 trillion in the latest week.
The iMoneyNet Money Fund average 7-day yield for taxable
money-market funds increased to 0.36 percent from 0.29 percent
the prior week.
There were government funds for institutional investors with
yields 0.40 percentage point above the average.
One institutional prime fund, which can invest in riskier
securities, offered a yield just above 1.00 percent in the
latest week, iMoneynet data showed.
The iMoneyNet Money Fund average 7-day yield for tax-Free
and Municipal money-market funds jumped from 0.20 percent last
week to 0.25 percent as of March 20.
A week ago, the Fed increased key short-term rates to a
range of 0.75-1.00 percent, while it signaled it will remain on
track for possibly two more rate increases in 2017.
(Reporting by Richard Leong; Editing by Sandra Maler)