June 19, 2019 / 7:24 PM / 2 months ago

UPDATE 1-U.S. money market assets grow for eight weeks -iMoneyNet

* Taxable money fund assets highest since Sept 2009

* Taxable fund yields fall below 2%, lowest since December (Updates with background, graphics)

By Richard Leong

NEW YORK, June 19 (Reuters) - U.S. money market fund assets increased for an eighth straight week, bringing the total to the highest level in more than nine years as investors have been shifting cash into low-risk funds on trade worries, a private report released on Wednesday showed.

U.S. money fund assets grew by $3.45 billion to $3.137 trillion in the week ended June 18, the Money Fund Report said.

During this eight-week span, total fund assets increased by $127 billion.

Investors’ caution about global trade tensions and their impact on economic growth persisted even as U.S. President Donald Trump said on Tuesday he plans to meet with Chinese President Xi Jinping at the G20 summit in Japan next week.

It is unclear when formal U.S.-China trade negotiations will restart but the United States is “certainly willing to engage” in the discussions, U.S. Trade Representative Robert Lighthizer told the House of Representatives Ways and Means Committee on Wednesday.

Taxable money market fund assets rose by $4.11 billion to $3.002 trillion, the highest level since Sept. 15, 2009, while tax-free assets decreased by $666.30 billion to $134.52 billion, according to the report, published by iMoneyNet.

The iMoneyNet average seven-day simple yield for taxable money funds fell to 1.99%, the lowest level since Dec. 25, from 2.01% last week. The weighted average maturity among taxable funds was unchanged at 30 days.

The iMoneyNet average seven-day yield for tax-free and municipal funds rose to 1.25% from 1.06%. The weighted average maturity of tax-free funds lengthened to 27 days from 25 days.

Reporting by Richard Leong Editing by Sonya Hepinstall

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