Average returns on money market funds slump to 9.3%

The average return on money market funds (MMFs), net of fees, fell to 9.3% as of October 15, down from 9.9% at the same time last year. The decline reflects lower interest rates generated by the funds’ underlying assets. Treasury bill yields and returns on commercial bank fixed deposits have fallen further this year, reducing potential MMF returns because the funds invest mainly in cash and near-cash assets.