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Thursday, December 11, 2008|
Treasury Plunge Drives Two Money Funds to Close
The fall in Treasury yields is bad news for some money market funds, or so says the Wall Street Journal. In the Thursday Fund Track, Daisy Maxey reports that, despite a 150 percent year-over-year rise in Treasury money fund assets as of November 30 (according to Crane Data president Peter Crane), at least two such funds, Evergreen Institutional 100% Treasury Money Market Fund and Allegiant Treasury Money Market Fund, closed to new investors on December 1. (The Evergreen fund had also been closed from September 19 through October 30.) Maxey added that three-year Treasury notes yielded 124.5 basis points as of Wednesday while four-week T-bills yielded zero.
One side note worth mentioning is that both National City (Allegiant's parent) and Wachovia (Evergreen's parent) are in the process of selling themselves, the former to PNC and the latter to Wells Fargo (see MFWire, October 24, 2008 and October 3, 2008).
Printed from: MFWire.com/story.asp?s=20120
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