Treasury-based money market funds continue to suffer from sustained low yields, and this time it's the AP that's spotlighting the tough times. Mark Jewell reports that, according to iMoneyNet, the average yield for such funds is down to 20 basis points, below the 32 bps low reached in 2004. And that means investors and managers alike are feeling the pain.

The pain of treasury money funds isn't new, though. Earlier this month, the Wall Street Journal reported on the closing of the Evergreen Institutional 100% Treasury Money Market Fund and the Allegiant Treasury Money Market Fund (see MFWire, December 11, 2008), and Vanguard later closed the Admiral Treasury Money Market Fund and the Treasury Money Market Fund to new institutional investors (see MFWire, December 17, 2008). 

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