{"id":2454,"date":"2007-10-12T09:35:20","date_gmt":"2007-10-12T09:35:20","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=2454"},"modified":"2025-03-27T15:48:30","modified_gmt":"2025-03-27T15:48:30","slug":"us-mzm-surging-bonds-at-risk","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=2454","title":{"rendered":"US MZM surging: bonds at risk?"},"content":{"rendered":"<p>&ldquo;Money of zero maturity&rdquo; (MZM) comprises currency, checkable deposits, instant-access savings accounts and money market mutual funds. The measure has been surging in recent weeks, with growth now running at over 12% on a year ago and 18% annualised over the last three months. <\/p>\n<p>The pick-up partly reflects the woes of the asset-backed commercial paper market. The volume of ABCP outstanding has fallen by $256 billion over the last nine weeks. The cash withdrawn appears to have flowed mainly into money market mutual funds, included in MZM. As a &ldquo;flight to safety&rdquo;, this does not appear entirely logical since &ndash; unlike bank deposits &ndash; money funds are not guaranteed by the Federal Deposit Insurance Corporation and the funds themselves invest heavily in commercial paper, including ABCP. (Total CP holdings amounted to 27% of money fund assets at mid-year.)<\/p>\n<p>While this ABCP effect could be distorting MZM, the recent pick-up is flashing a warning signal for the Treasury market. As the chart shows, swings in the three-month growth rate tend to lead movements in 10-year Treasury yields. <\/p>\n<p><span class=\"full-image-float-none\"><img decoding=\"async\" style=\"width: 500px; height: 300px\" alt=\"US10YearTreasuryYield.jpg\" src=\"\/storage\/US10YearTreasuryYield.jpg\" \/><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&ldquo;Money of zero maturity&rdquo; (MZM) comprises currency, checkable deposits, instant-access savings accounts and money market mutual funds. The measure has been surging in recent weeks, with growth now running at over 12% on a year ago and 18% annualised over the last three months. The pick-up partly reflects the woes of the asset-backed commercial paper [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2454","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2454"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2454\/revisions"}],"predecessor-version":[{"id":4763,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2454\/revisions\/4763"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}