Last week, J.​P. Morgan wrote in its "JPM Mid-​Week US Short Duration Update," that, "July was a muted month for MMFs, with inflows totaling just $​15bn, the weakest July inflows since 2021.... However, beneath the surface, `​MMFs absorbed a large share of the nearly $​300bn increase in net T-​bill supply to private investors in July. Indeed, MMFs increased their T-​bill allocations by $​264bn last month, absorbing nearly 88% of the issuance. Against this backdrop of muted inflows but heavy T-​bill absorption, MMFs rotated out of repo, with total repo allocations declining by $​124bn, bringing their allocation as a share of portfolio holdings down to 35%, the lowest since October of last year." They tell us, "Unsurprisingly, most of the decline in repo exposure came from the FICC-​cleared repo, likely reflecting a reversal of June quarter-​end balance sheet effects. At the same time, MMFs' dealer repo exposure surged, rising $​101bn and bringing total dealer repo exposure to nearly $​2.​1tn.... Within dealer repo, exposure to U.​S. banks increased by $​75bn to $​979bn, taking the year-​to-​date repo increase to $​187bn. In contrast, exposure to Canadian dealers declined by $​100bn in July, likely reflecting balance sheet adjustments around Canadian bank quarter-​end. Outside of repo, government MMFs have also trimmed other exposures; allocations to Treasury coupons and FRNs declined by $​89bn, consistent with a rotation into T-​bills this month. Government MMFs' allocations to agencies rose, modestly, to $​1.​18tn, driven by …