Bloomberg writes that the "Dash for Cash Sends Money-​Fund Assets to Record $​8.​3 Trillion." The article states, "Investors boosted the total amount in US money-​market funds to a record $​8.​281 trillion as uncertainty surrounding the Federal Reserve'​s monetary policy path fuels demand for cash-​like assets. Some $​66 billion rushed into the money-​market fund industry in the week ending May 28, according to the latest figures from Crane Data LLC. About $​41 billion of that came on Thursday as investors adjusted their portfolios before month'​s end. In all, the funds have attracted about $​172 billion so far this year." The piece tells us, "The recent inflows have come as traders abandoned bets that the Federal Reserve will resume cutting interest and began wagering that a hike would be needed to help quell a resurgence of inflation tied to the Iran war. Swaps markets imply a roughly 60% chance that officials increase rates by a quarter-​point this year. To Deutsche Bank strategist Steven Zeng, the recalibration is fueling demand for front-​end US rates, which -- along with other types of short-​term securities -- make up the holdings of most money-​market funds. As Fed expectations shifted from cuts to hikes, much of that repricing is captured in the bill curve, meaning more attractive yields,' he said." Bloomberg adds, "Appetite for money-​market funds has been rising for years thanks to their attractive yields and ease of access for investors ranging from Wall Street professionals to corporate treasurers and everyday American savers. The funds also tend to be faster than other investment vehicles to pass along higher yields to investors. The seven-​day average yield for US money funds was 3.​34% as of May 28, according to Crane Data."

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