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Money market funds fell by $138 billion in latest week ici

The Investment Company Institute on Thursday issued the following money market mutual fund assets report:"Total money market mutual fund assets decreased by $1.38 billion to $2.562 trillion for the week ended Wednesday, October 10, the Investment Company Institute reported today. Taxable government funds decreased by $3.89 billion, taxable non-government funds increased by $4.64 billion, and tax-exempt funds decreased by $2.13 billion. Retail: Assets of retail money market funds decreased by $2.90 billion to $886.96 billion. Taxable government money market fund assets in the retail category decreased by $190 million to $186.11 billion, taxable non-government money market fund assets decreased by $1.84 billion to $512.00 billion, and tax-exempt fund assets decreased by $860 million to $188.84 billion.

Institutional: Assets of institutional money market funds increased by $1.52 billion to $1.675 trillion. Among institutional funds, taxable government money market fund assets decreased by $3.70 billion to $670.47 billion, taxable non-government money market fund assets increased by $6.49 billion to $924.21 billion, and tax-exempt fund assets decreased by $1.27 billion to $80.78 billion.

ICI reports money market fund assets to the Federal Reserve each week. Revisions are due to data adjustments, reclassifications, and changes in the number of funds reporting. Weekly money market assets for the last 20 weeks are available on the ICI website."

NOTE: ICI's Web site is this site var $relatedItems = $('lia "/article/us-new-york-corruption-pensionfund-idUSKBN14O1S8"N. Y. pension fund manager pleads not guilty to pay-to-play scheme/a/lilia "/article/us-investment-funds-trimtabs-idUSKBN14O1OE"U.S. stock ETFs collect record cash in December: TrimTabs/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Money/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Money/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $(' ul'); var $relatedContentGroupTwo = $(' ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Money/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Money Investors hold fewest net shorts on U.S. Treasuries since November: JPM NEW YORK The margin on bearish bets on longer-dated U.S. Treasuries over bullish positions shrank to its smallest since late November as bargain-minded investors emerged after the recent bond market selloff, a J. P. Morgan survey released on Wednesday showed. BlackRock's U.S.-based active funds post record 2016 withdrawals: Morningstar NEW YORK Investors pulled $19.3 billion from BlackRock Inc's U.S.-based actively managed mutual funds in 2016, Morningstar Inc estimates showed on Tuesday, a record high as the investment industry struggles to restrain an exodus to lower-cost investments. DoubleLine Total Return bleeds $3.5 billion, biggest monthly outflow ever NEW YORK The DoubleLine Total Return Bond Fund posted a net outflow of $3.5 billion in December, its biggest one-month withdrawal ever, data from research firm Morningstar showed on Tuesday. MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push

Money markets ecb borrowing falls but cash surplus here to stay

* ECB borrowing down 20 bln euros, excess to remain large* Huge surplus after 3-yr operation to keep rates ultra low* Reserve requirement cut, Feb long-term tender to boost cash surplusBy William JamesLONDON, Jan 10 Euro zone banks cut their weekly borrowing from the European Central Bank by 20 billion euros on Tuesday, but the huge cash surplus providing life-support to the banking sector looks set to remain over the long term. Banks' need for short-term loans typically falls as the demand for cash to place on reserve at the ECB eases towards the end of a monthly cycle, but the decline has been accelerated by the central bank's provision of more, longer-term loans. This was reflected in falling demand for the ECB's weekly funding injection. Borrowing fell to 110.9 billion euros, down from 130.6 billion euros last week. Euro zone banks took up 489 billion euros late last month in the first of two opportunities to access the three-year loans - operations the ECB hopes will minimise the chances of them slashing lending in response to the region's debt crisis.

Despite the decline in week-to-week funding, the amount of cash in excess of what the ECB estimates banks need was set to keep rising and remain high over at least the next year. As a result overnight rates are anchored at rock-bottom levels and longer-term rates look likely to extend their falls."It's definitely suppressive. It keeps short-dated rates subdued and that's why you're seeing the (German two-year) Schatz where it is, Euribor has been falling, Eonia remains subdued and will remain that way," said Orlando Green, strategist at Credit Agricole in London.

Both Libor and Euribor - benchmark rates for unsecured lending between banks - have tumbled since the ECB cash injection in December while the overnight Eonia rate hovers at 0.372 percent, just 12 bps above the central bank's deposit rate. Three-month Euribor fell to 1.267 percent, the lowest since early April and down from 1.276 percent on Monday. Barclays Capital strategists estimate the rate could continue to fall, reaching 1 percent in the next few weeks. The equivalent Libor fixing fell to 1.20929 percent, down for the 14th consecutive session.

RISING LIQUIDITY TIDE The anticipated rise in excess liquidity, which currently stands at 422 billion euros according to Reuters data , was seen coming from two sources. Firstly, the ECB decided in December to halve the amount of cash it requires banks to keep on reserve. This means that from the beginning of the next maintenance period on Jan. 18, banks will have more available funds."The three-year (lending operation) itself amounts to 489 billion euros - thus creating excess liquidity of more than 300 billion for at least the next 12 months... regardless of the actual funding conditions in the market," said Barclays Capital rate strategist Giuseppe Maraffino in a note. Secondly, another opportunity to take out three-year loans at the ECB in February was also seen likely to attract significant demand, analysts said, underscoring the view that excess liquidity would remain high, and interbank rates low."I think the banks will take up the opportunity. At this stage it makes sense for banks to continue to get involved and then if they don't want it then after a year they can opt out," Credit Agricole's Green said.