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 Banks 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. 

Edited by: Neil Anderson, Managing Editor


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