Morningstar writes on bond fund and money market funds in "6 Charts On Where Bond Fund Investors Are Putting Their Money." The piece tells us, "Investors have favored bond funds over stock funds for many years, but as interest rates stay elevated, they are shifting where they put their money. Prior to the big rise in interest rates in 2022, investors gravitated toward short-term and high-yield bond funds. Now, with interest rates higher across the board, investors are choosing safer government and long-term bond funds and taking advantage of high interest rates on money market funds." Under the section, "Investors Take Advantage of Money Market High Yields," they state, "Instead of exploring riskier corners of the bond market, many investors are taking advantage of higher yields on money market funds. The average seven-day yield on a money market fund sits at 4.27%, up from 1.72% a year ago and a mere 0.01% two years ago. Investors pulled $53.6 billion from money market funds last year but have feverishly returned to them since then. These funds have collected $724 billion this year, outpacing flows to all long-term funds. Investors particularly flocked to money market funds in the first quarter, after the collapse of some regional banks caused panic over the safety of bank deposits."

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