NEW YORK (Reuters) - The U.S. money market industry recorded its first outflow in six weeks, as assets retreated from their strongest levels since early 2010 prompted by a rebound in equities and other risky assets, according to a private report released on Wednesday.
U.S. money market funds, which are seen only a tad riskier than bank accounts, posted a $17.00 billion drop in assets to $3.012 trillion in the week ended Jan. 15, the Money Fund Report said on Wednesday.
Withdrawals from money market funds in the latest week reversed prior weeks' heavy inflows, as stock markets around the world showed some stabilization after being rattled in the last weeks of 2018 and early 2019 on worries about a global economic slowdown, analysts said.
Taxable money market fund assets declined by $16.22 billion to $2.867 trillion, led by a $16.03 billion drop in assets among institutional government funds, according to the report, published by iMoneyNet.
Tax-free assets fell by $775.80 million to $145.76 billion,
The seven-day simple yield on taxable money-market funds averaged 2.03 percent, down from 2.07 percent the week before, while the average seven-day simple yield for tax-free and municipal money-market funds slipped to 0.98 percent from 1.19 percent the previous week, iMoneyNet said.
(GRAPHIC: U.S. money fund assets - https://tmsnrt.rs/2N3eZa0)