Money-market funds saw a massive $102BN inflow last week (the largest since the middle of the SVB crisis in March). The fifth straight week of inflows pushed total MM fund assets to a new record high of $5.84 TN…
Source: Bloomberg
In a breakdown for the week to Nov. 29, government funds – which invest primarily in securities like Treasury bills, repurchase agreements and agency debt – saw assets rise to $4.77TN, a $71.5BN increase.
Prime funds, which tend to invest in higher-risk assets such as commercial paper, meanwhile, saw assets climb to $940BN, a $2.19BN increase.
With the vast bulk of that being into institutional funds (+$71BN), but the unbroken trend of flows into retail funds also continued…
Source: Bloomberg
The resurgence in money-market fund inflows is diverging from bank deposits (which are gently rising on a seasonally-adjusted basis)…
Source: Bloomberg
Meanwhile, despite a small uptick into month-end, November saw a massive exodus of funds from The Fed’s reverse repo facility, now at its lowest since July 2021…
Source: Bloomberg
Demand for the facility has been fading this year as the Treasury ramped up fresh bill issuance, offering an alternative for…
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