Investors can get a 5% yield in these assets and skip the bond market volatility

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Here's what to know about government money market funds.

Investors are piling into money market funds at historic rates thanks to their juicy 5% yields. Yet the funds are not only attractive for their income, they are also less volatile than the bond market right now, which has been rocked as Treasury yields soar. Bond yields move inversely to prices. "Now it appears [5% yield] is here for the foreseeable future," said Peter Crane, founder of Crane Data, a firm that tracks money markets.

" Here are the largest retail government money market funds, according to Crane Data. Government funds make up about 80% of the market, while prime funds — which include corporate credit — account for about 20%. Investing in money market funds The interest in money market funds began to heat up when the Federal Reserve started raising interest rates last year, Antoniewicz said. Some $64.

 

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