April 25, 2012 / 7:30 PM / 6 years ago

UPDATE 1-US money market assets up 1st time in 8 weeks

April 25 (Reuters) - U.S. money market fund assets rose for the first time in eight weeks as investors have stopped further redemption despite nagging concerns about possible regulatory changes for the industry.

Analysts also have blamed worries about the risk of ratings downgrades of global banks and financial companies from Moody’s Investors Services on the recent flight out of these funds, which are seen as alternatives to bank accounts.

Worries about the radical political changes in France and the Netherlands last week spurred fears over euro zone’s leadership to handle the region’s debt crisis. They led to a sell-off in stocks and risky assets and revived appetite for cash and lower risk bonds.

U.S. money fund assets rose by $8.1 billion to $2.561 trillion in the week ended April 24 from prior week’s eight-month low, the Money Fund Report said on Wednesday.

Taxable money market fund assets rose by $11.87 billion to $2.285 trillion, while tax-free assets were down by $3.77 billion at $276.92 billion, according to the report, published by iMoneyNet.

Yields on taxable money market funds remained at 0.03 percent for the 12th week, according to the report.

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