This year, the yields of "baby" funds have continued to decline. According to Wind data, as of December 16, the median seven-day annualized yield of 941 money market funds stood at 1.24%. Among them, 102 funds saw their yields drop below 1%, while over 300 funds reported yields between 1% and 1.2%.

However, Tianhong Yu'ebao, the largest fund by scale, has maintained its yield above 1%. As of December 16, its seven-day annualized yield was 1.014%, showing a slight rebound from the previous week. Earlier, the fund's yield had dipped to 1.001% but remained above the 1% threshold.

In its quarterly report, the manager of Tianhong Yu'ebao noted that the phenomenon of deposit migration has impacted banks' fund management, increasing liquidity friction and reserve requirements. This has led to a decline in the base money supply in the interbank market, amplifying volatility in key interest rates. The bond and stock markets exhibited a seesaw effect, with bond market adjustments also influencing interbank certificates of deposit (NCDs). Despite limited pressure on bank liabilities, NCD adjustments have been gradual and restrained compared to the bond market. However, as existing assets mature, overall yields continue to trend downward.

Despite the long-term downtrend in money market fund yields, recent data shows their scale has grown rather than shrunk, driven by lower demand deposit yields and volatility in both bond and equity markets. According to the Asset Management Association of China, money market funds reached 15.05 trillion shares by the end of October, up by over 38 million shares from September.