What's going on in Tax-Exempt Money Market Funds?

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baker1966
Posts: 2
Joined: Thu May 09, 2019 12:00 pm

What's going on in Tax-Exempt Money Market Funds?

Post by baker1966 » Thu Mar 26, 2020 11:53 am

Hello,

I have noticed a HUGE increase in yield in my Vanguard CA tax-exempt MM fund! It has gone from around 1.0% a month or so ago (before all the craziness) and now has crept up to 3.14% as of this morning. I have noticed similar outsized increases in other state MM funds (NJ, NY, Penn).

Is this something I should be happy about or, following the maxim of "its too good to be true", be worried about?

I appreciate any responses.

Thank you,
Chris C.

bloom2708
Posts: 7450
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: What's going on in Tax-Exempt Money Market Funds?

Post by bloom2708 » Thu Mar 26, 2020 11:58 am

Few are buying which means they have to give more interest to make them more buyable.

More interest. Price goes down. I can not answer good vs bad. The bond market is in turmoil along with stocks.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

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