US money market funds hit record $8.0 trillion in assets as investors flee risk amid rising rates.
Macro & Markets ·
US money market funds reached a record $8.0 trillion in assets following inflows of $72.3 billion during the week ending October 7th, part of a broader surge in money market activity globally. The weekly inflow represented the largest since April 2020, while global money market funds attracted $166.4 billion in the same period. Since 2023, US money market fund assets have accumulated $3.0 trillion in new capital.
Treasury funds, a subset of the bond market, recorded their 15th consecutive week of inflows, taking in $16.2 billion—the largest weekly intake since April 2025. Global bond funds more broadly pulled in $33.8 billion during the same week. The concurrent strength across money market and Treasury vehicles reflects a shift in investor positioning as interest rates have moved higher.
The pattern underscores how rising rates have altered relative attractiveness of different asset classes, though the precise drivers of current rate movements and their expected persistence remain open questions for market participants.