Investors should keep an eye on the municipal money market yields
, as we expect them to remain attractive compared with taxable money funds with comparable maturities and similar credit ratings.
Since elections we have seen lowering the money market yields
on long term instruments of 3-10 years upto 84bps to currently yield at 9.
Structured products offering capital protection and enhanced yield, to compensate for low money market yields
, are enjoying an under-writing bull market.
Right now, with money market yields
at zero and the 10-year Treasury bond under 2%, baby boomers are being forced to look at equities as a way to get income.
Over the course of 2010, money market yields
declined 38% to 0.
Institutional profit-taking continued on economic uncertainty, security concerns in the country and rise in money market yields
Something had to be done unless the life companies wanted to be left with only term insurance to sell in circumstances where customers were creating their own "permanent life insurance" by combining the high money market yields
with term policies.
First, low short interest rates and bond yields have encouraged cheap borrowing and enabled private equity specialists to leverage themselves up and to purchase companies on valuations that exploit the difference between money market yields
and earnings yields.
In the City, where short-term money market yields
moved sharply higher, the debate centred largely on the timing of any upward move.
Under the current low interest-rate environment, managing 10 billion yen overnight in the call money market yields
only 200 yen, according to the officials.
The sheer weight of liquidity pumped into stocks, low money market yields
, share buy-backs, corporate restructuring, mega-mergers and strong earnings are underpinning equities.
In the intermediate term, M2 velocity--nominal income divided by the stock of M2--tended to vary directly with the difference between money market yields
and the return on M2 assets--that is, with its short-term opportunity cost.