LONDON, Could 26 (Reuters) – Buyers have poured $756 billion into money funds this 12 months, Financial institution of America mentioned in a notice on Friday, attracted by juicy yields and pushed by issues about banks.
The push into cash market funds continued within the week to Wednesday, with $23.1 billion flowing into the cash-like devices, in response to 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 put money into extremely liquid short-term debt, resembling that issued by governments.
The collapse of a handful of mid-sized U.S. banks this 12 months has prompted many individuals and firms to tug their cash out of financial institution deposits and put it into MMFs.
BofA’s notice 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 12 months, 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 complete yearly inflows to $152 billion, BofA mentioned.
The circulation into money funds is quickly approaching 2020 ranges, when COVID-19 spooked buyers and $917 billion made its method into cash market funds.
Reporting by Harry Robertson; Enhancing by Amanda Cooper
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