As the U.S. banking industry continues to explode, a large amount of funds have left banks in search of higher-quality safe-haven assets. Among them, U.S. money market funds have received the largest cash inflow since 2020, with an inflow of more than 120 billion U.S. dollars. This part of the funds will mainly Used to purchase relatively stable assets such as treasury bonds and agency debt.
Of the more than 120 billion in funds, about 100 billion comes from institutions and the other 20 billion comes from retail investors. In human terms, a large amount of idle funds began to be withdrawn from banks, and indeed the largest part entered the bond market and other relatively safe-haven assets, such as U.S. Treasuries. It is not even ruled out that some funds have entered the risk market, which is dominated by the stock market. To put it more bluntly, there is more "living money" in the market and the liquidity of funds has also increased. Repost Ni Da’s views.
