The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") recently, and among the 4 tables it includes on money market mutual funds, the Third Quarter 2025 edition shows that Total MMF Assets increased by $293 billion to $7.774 trillion in Q3'25. The Household Sector, by far the largest investor segment with $5.035 trillion, saw the biggest asset increase in Q3, followed by Nonfinancial Corporate Business and Other Financial Business (formerly Funding Corps). The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also showed noticeable increases for the Mutual Funds and Rest of the World categories in Q3 2025.
Households, Nonfinancial Corporate Business, Other Financial Business, Mutual Funds, Rest of the World, Private Pension Funds, Life Insurance Companies, Nonfinancial Noncorporate Business, Exchange-traded funds and State & Local Governments categories saw asset increases in Q3, while Property-Casualty Insurance and State & Local Govt Retirement saw asset decreases last quarter. Over the past 12 months, the Household Sector, Nonfinancial Corporate Business and Other Financial Business categories showed the biggest asset increases.
The Fed's "Table L.206," "Money Market Mutual Fund Shares," shows that total assets increased by $293 billion, or 3.9%, in the third quarter to $7.774 trillion. The largest segment, the Household sector, totals $5.035 trillion, or 64.8% of assets. The Household Sector increased by $186 billion, or 3.8%, in the quarter. Over the past 12 months through Sept. 30, 2025, Household assets were up $635 billion, or 14.4%.
Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $1.028 trillion, or 13.2% of the total. Assets here increased by $42 billion in the quarter, or 4.2%, and they've increased by $115 billion, or 12.6%, over the past year. Other Financial Business was the third-largest investor segment with $526 billion, or 6.8% of money fund shares. This category rose $36 billion, or 7.3%, in the latest quarter. Other Financial Business, which we believe includes Securities Lending, has increased by $64 billion, or 13.9%, over the previous 12 months.
The Mutual Funds category was the fourth-largest investor segment with $244 billion, or 3.1%, while the fifth-largest segment, Rest of the World, held $229 billion (2.9%), and the sixth-largest category, Private Pension Funds, held $227 billion (2.9%). Nonfinancial Noncorporate Business held $145 billion (1.9%), Life Insurance Companies held $113 billion (1.5%), State & Local Governments held $88 billion (1.1%), Property-Casualty Insurance held $68 billion (0.9%), Exchange-traded Funds held $44 billion (0.6%), and State & Local Govt Retirement held $28 billion (0.4%) according to the Fed's Z.1 breakout.
The Fed's "Flow of Funds" Table L.121 shows "Money Market Mutual Funds" largely invested in "Security Repurchase Agreements" with $2.772 trillion, or 35.7%, and "Debt Securities," or Credit Market Instruments, with $4.698 trillion, or 60.4% of the total. Debt securities include: Open market paper ($314 billion, or 4.0%; we assume this is CP), Treasury securities ($3.232 trillion, or 41.6%), Agency and GSE-backed securities ($999 billion, or 12.8%), Municipal securities ($140 billion, or 1.8%) and Corporate and foreign bonds ($13 billion, or 0.2%).
Another large MMF position in the Fed's series includes `Time and savings deposits ($261 billion, or 3.4%). Money funds also hold minor positions in Miscellaneous assets ($43 billion, or 0.6%) and Foreign deposits ($0.0 billion). Note: The Fed also lists "Variable Annuity Money Funds," which currently total $50 billion.
During Q3, Debt Securities were up $628 billion. This subtotal included: Open Market Paper (up $1 billion), Treasury Securities (up $618 billion), Agency- and GSE-backed Securities (up $6 billion), Corporate & Foreign Bonds (up $4 billion) and Municipal Securities (down $1 billion). In the third quarter of 2025, Security Repurchase Agreements were down $333 billion, Foreign Deposits were down $800 million, Time & Savings Deposits were down $42 billion, and Miscellaneous Assets were up $41 billion.
Over the 12 months through 9/30/25, Debt Securities were up $810 billion, which included Open Market Paper (up $21B), Treasury Securities (up $573B), Agencies (up $205B), Municipal Securities (up $9B), and Corporate and Foreign Bonds (up $3B). Foreign Deposits fell $3B and Time and Savings Deposits decreased $53B. Securities Repurchase Agreements were up $84B over the year, while Miscellaneous Assets rose $97B.
The L.121 table shows `Stable NAV money market funds with $7,407 billion, or 95.3% of the total (up $270.8B or 3.8% in Q3 and up $915B or 14.1% over 1-year), and Floating NAV money market funds with $367 billion, or 4.7% (up $22.0B or 6.4% in Q3 and up $20B or 5.9% over 1-year). Government money market funds total $6.302 trillion, or 81.1% (up $246.5B or 4.1% in Q3 and up $755.3B or 13.6% over 1-year), `Prime money market funds total $1.329 trillion, or 17.1% (up $46.1B or 3.6% in Q3 and up $171B or 14.8% over 1-year) and Tax-exempt money market funds $143B, or 1.8% (up $0.3B or 0.2% in Q3 and up $9B or 6.4% last year).
Note that the Federal Reserve made some changes to its Z.1 tables several years ago. Describing a "Money market funds sector data source change," the report says, "The money market mutual funds (MMF) sector (tables F.121 and L.121) has been revised beginning 2010:Q4 to reflect a change in data source to Securities and Exchange Commission Form NMFP. The level of assets and shares outstanding of the sector have increased due to the inclusion of private placement MMFs in the source data. Changes in the level due to changes in the data source in 2010:Q4 are recorded as other volume changes in the Financial Accounts."
On "Mutual funds sector holdings of money market funds," Z.1 tells us, "The mutual funds sector (tables F.122 and L.122) has been revised beginning 2010:Q4 to reflect holdings of money market funds not previously reported on the tables. In addition, holdings of repurchase agreements, commercial paper, corporate bonds, and miscellaneous assets have been revised. Additional and revised holdings are estimated using data from Morningstar and Investment Company Institute.... The exchange-traded funds sector (tables F.124 and L.124) has been revised beginning 2010:Q4 to reflect holdings of money market funds not previously reported on the tables."
