Wednesday, July 20, 2005

Money Market Yield above 3%

The yield of the Vanguard Prime Money Market Fund (Symbol: VMMXX) is now at 3.02%. The Vanguard Federal Money Market Fund (Symbol: VMFXX) is yielding 3.01%. The Federal Reserve Chairman Allen Greenspan painted an upbeat picture of the national economy today. With this improving economy, it is expected that the Fed will raise the rate at the next meeting, so money market rates should approach 3.50% and probably 4% by the end of this year.

It is also important to note that the long bond yields are also rising in the last couple of weeks. The 10-year bond is yielding 4.15% and 30-year bond is yielding 4.39% today.

I think it is safe to say that the parked money is working for you.

No comments: