The market was expecting a slightly higher money market rate going into the month end on fiscal tax collection.
And if your kid doesn't go to a state school, you'll get your money back, with, for example, a money market rate of return.
It is the refinancing rate that usually dictates average money market interest rates with the deposit facility rate acting as a lower floor.
Banks generally will not lend funds in the money market at an interest rate lower than the rate they can earn risk-free at the Federal Reserve.
Indeed, while the Fed can use its powers to push the cost of money below the natural market rate, there's nothing saying that those in possession of cash have to offer their savings at that rate.
We discounted the earnings improvements back to 1994, using a rate keyed to money market yields.
We discounted the earnings improvements back to 1992, using a rate keyed to money market yields.
This is a nexus of private-equity and hedge funds, money-market funds and auction-rate securities, non-banks such as GE Capital and new securities such as CDOs and credit-default swaps.
But volumes will fall because corporate customers will no longer need to hold accounts in several currencies, and banks will no longer be able to use the money market to profit from interest-rate differentials between euro-zone currencies.
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In addition, many money market funds and corporate treasuries held Auction Rate Preferred Securities (ARPS).
These pay roughly the same interest rate as the money-market accounts it previously used, but offer the benefit of federal deposit insurance.
My point here is that open market purchases and the associated expansion of money growth rate are accepted as normal or routine Fed policy so long as interest rates have some room to decline in the process.
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Suttong, a battery maker, was recently forced to raise money at 450 basis points over the prevailing rate in the bond market.
Put your spare capital in a money market fund and you lose 3% per annum adjusted for the real rate of inflation.
This is not a year to hunker down in money market funds or to seek safety in government bonds (which in fact rate high on the risk meter).
From a rate of 3.4 ringgit to one dollar, the currency was devalued to 3.8, well below the then market rate, so investors had little incentive to take their money out by illicit means.
Money market funds remain large, and continue to invest in securities subject to interest rate and credit risk.
The low interest rate environment also makes holding gold funds better than holding cash or money market funds, he says.
Sensing that they'll not achieve a market rate of return on their loans, savers are seeking alternatives to putting money in the bank, where they'll achieve negligible rates of interest on their savings.
In fact, the existence of LSAs and RSAs will create pressure to make all investment income and gains tax free, just as money market funds in the mid-1970s ended Washington's long-standing interest-rate controls for bank deposits.
But with the average rate on a savings account at 0.24 percent, on a money market account at 0.22 percent, and on a 1-year CD at 0.53 percent, nominal returns are close to zero, and real returns are negative even at relatively low rates of inflation.
In the current money market conditions, where banks have to approach the central bank for borrowing, the overnight lending rate is in fact the key operational policy rate.
They - just like Mr. Weller said, they're really getting into a lot of different types of loans to make the cost of money, i.e. interest rate, more favorable for them on the entering into the market.
With mortgage money so readily available, the U.S. housing market took off, rising at roughly twice the rate of gross domestic product (GDP) over the five years to 2007.
If short-term interest rates (primarily the target Fed-Funds rate) are close to zero the impact of more bank credit and more money creation through open market purchases remains.
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But if, like most of us, you hold your nest egg in a savings account, a money market fund, real estate, or a 401(k) plan then what you care about is your real rate of return, not the inflation rate per se.
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