US money market fund assets hit record $8.28T with $66B weekly inflow

Assets in US money market funds rose by $66 billion in the week ending May 28, pushing total holdings to a record $8.28 trillion, according to data cited by The Kobeissi Letter. Of that weekly total, $41 billion entered in a single day as investors rebalanced portfolios ahead of month-end.

Year-to-date, money market funds have attracted $172 billion in total inflows. Since the onset of the pandemic in 2020, total assets have surged 112%, or $4.4 trillion.

The surge comes as markets price in roughly a 60% probability of a Fed rate hike this year, fueling demand for short-term cash-like instruments. The 7-day average yield on US money market funds stood at 3.34% as of May 28.