Money market fundsters may be able to breathe a little bit easier soon. The Wall Street Journal
's Cynthia Lin reports
that, thanks to a new plan from the Federal Reserve, yields on money market mutual funds may rise a bit in the coming months.
In 'Operation Twist,' the Fed plans to sell shorter-term Treasurys over the next nine months. If that pushes short-term Treasury prices down (and thus yields up), that may boost money fund yields by five to 10 basis points, according to Gary Pollack
, head of fixed-income trading at Deutsche Bank
s private wealth management unit.
Several fundsters weighed in for the story, including Debbie Cunningham
, chief investment officer of Federated Investors
and Joseph D'Angelo
, head of the money-market desk at Prudential Fixed Income
Neil Anderson, Managing Editor
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