Investors kept pulling
billions from U.S. money-market mutual funds in the week ending Tuesday, withdrawing $41.6 billion, or 1.6 percent of total assets, as concern grew over lawmakers’ inability to strike a budget deal that would avert a default on Treasury securities, an issue that was finally resolved Wednesday night.
The exodus was punctuated by the withdrawal of $21.6 billion on Oct. 11, according to research firm Crane Data in Westborough, Mass.
Investors pulled $15.7 billion in the preceding week. While the spike appeared connected to the approaching debt ceiling, it was exacerbated by companies moving cash to make payroll and meet a quarterly tax-payment deadline, said Peter Crane, president of Crane Data. “The outflows are still quite manageable,” Crane said. “They’d be worrisome if they continued.”
Several of the largest money-fund providers, including Fidelity and JPMorgan Chase, have said they have sold Treasurys maturing in the next few weeks and are building extra liquidity to meet potential client withdrawals.
- Black Lives Matter protesters march, conduct sit-ins in downtown Seattle
- Turkey’s president, Putin hurl insults after plane downed
- Apple Cup Game Center: UW Huskies dominate No. 20 Cougars, shut down WSU's offense in Seattle
- Teen, one of 14 siblings, finally gets to be a kid
- Seattle sushi fans, rejoice: Shiro's new place is open