NEWS UPDATE: U.S. money market funds continue to attract substantial investor demand, with assets increasing by $66 billion during the week ending May 28 to a record $8.28 trillion. Notably, approximately $41 billion of these inflows occurred in a single day as investors adjusted portfolio allocations ahead of month end. Since the beginning of the year, money market funds have accumulated roughly $172 billion in net inflows, while total assets have expanded by approximately $4.4 trillion or 112% since the onset of the pandemic in 2020. From a macroeconomic perspective, these flows reflect investors' preference for liquidity and capital preservation amid uncertainty surrounding the future path of monetary policy. With markets assigning a meaningful probability to further Federal Reserve policy tightening and short term rates remaining elevated, cash equivalent instruments continue to offer relatively attractive risk adjusted returns. Consistent with this environment, the average seven day yield on U.S. money market funds stood at 3.34% as of May 28, reinforcing their appeal as a destination for both institutional and retail capital. The continued migration of funds into money market vehicles suggests that investors remain highly attentive to forthcoming Federal Reserve policy decisions and the evolving interest rate outlook. Source: Bloomberg, Crane Data LLC 🌱🇺🇸