LONDON, Might 26 (Reuters) – Traders have poured $756 billion into money funds this yr, Financial institution of America stated in a be aware on Friday, attracted by juicy yields and pushed by considerations about banks.
The frenzy into cash market funds continued within the week to Wednesday, with $23.1 billion flowing into the cash-like devices, in keeping with BofA, which cited figures from monetary information firm EPFR.
Rising rates of interest have pushed up the yields out there on cash market funds, that are mutual funds that spend money on extremely liquid short-term debt, similar to that issued by governments.
The collapse of a handful of mid-sized U.S. banks this yr has prompted many individuals and corporations to tug their cash out of financial institution deposits and put it into MMFs.
BofA’s be aware additionally confirmed that curiosity in tech shares continued, with $500 million flowing into tech inventory funds within the sixth straight week of inflows.
The tech-heavy Nasdaq U.S. inventory index (.NDX) has risen round 25% this yr, boosted by pleasure about synthetic intelligence.
Total, nonetheless, inventory funds noticed their third straight week of outflows, at $3.9 billion.
Bond funds noticed inflows of $9.5 billion within the week to Wednesday. That took whole yearly inflows to $152 billion, BofA stated.
The circulate into money funds is quickly approaching 2020 ranges, when COVID-19 spooked buyers and $917 billion made its approach into cash market funds.
Reporting by Harry Robertson; Enhancing by Amanda Cooper
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