...Euro MMFs Yields Down to 8bp: Declining euro market rates following the June ECB rate cut have partly been reflected in euro MMFs yields, which fell to an average of 8bp in mid- June and then stabilised. This is 17bp above the 7-day euro LIBID, which was negative 8bp at end-June, back at the low seen during 2H12 and 1H13, as MMFs took advantage of a steep curve across maturities up to a year through extended portfolio weighted average lives (WAL). Sterling and US dollar MMF yields were stable at 35bp and 4bp on average, just above the 7- day LIBID. CNAV Asset Growth: European MMF assets stood at EUR927bn at end-June. In 2Q14, constant net asset value (CNAV) funds' assets grew by 5%, well spread across funds in euro, sterling and US dollars. Less Risk Aversion Drives VNAV Flows: Variable NAV (VNAV) funds domiciled in France, the second largest MMF segment in Europe, saw their assets contract by 4% over the quarter. This resulted from a combination of seasonal quarter-end investors' flows...
