Money-market fund assets climbed to a fresh record as interest rates north of 5% continue to lure cash from banks and other short-term investments.
About $14 billion poured into US money-market funds in the week through Aug. 9, according to data from the Investment Company Institute. Total assets reached $5.53 trillion, versus $5.52 trillion the previous week.
Investors have piled into the money funds ever since the Federal Reserve began one of the most aggressive tightening cycles in decades last year to quell runaway inflation. Last month officials raised their main policy rate to between 5.25% and 5.5%, the highest in 22 years. Money funds have been quicker to pass on the benefits to investors than banks.
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