Thursday, March 12, 2009

Market Watch: J.P. Morgan Reopens Treasury Money Fund

Market Watch reports that, moving against the recent trend of asset managers closing their Treasury money market funds because of drastically falling rates and overwhelming demand, J.P. Morgan Funds will reopen J.P. Morgan U.S. Treasury Plus Money Market, which invests heavily in Treasury bills and repurchase agreements.

The Market Watch article suggests that J.P. Morgan may be reopening the fund because they sense that with the government issuing more debt to finance its efforts to stimulate economic growth, rates are climbing back up, and the fund sees opportunity with clients who are still seeking exposure to Treasuries. Whether J.P. Morgan has seen a real opportunity and the reopening of Treasury money market funds will become a trend, or if J.P. Morgan U.S. Treasury Plus is an outlier remains to be seen.

The full Market Watch article is available at:{80BCF5FC-4B6A-4B35-AE70-F107EDB95E54}