US money market funds’ weekly inflows hit 3-year high on bank worries

US money market funds attracted their biggest weekly inflows in nearly three years in the week to Mar 15 as investors pulled out of risk assets and fled for safety on fears of a fallout from the recent collapse of three US banks.

However, fund infusion by large US banks into the troubled San Francisco-based First Republic Bank on Thursday (Mar 16), eased some worries.

According to Refinitiv Lipper data, investors accumulated a net US$108.17 billion worth of US money market funds, clocking their biggest weekly net purchase since April 2020. They also secured US$7.49 billion worth of government bond funds.

Meanwhile, US equity funds recorded money withdrawals worth US$17.12 billion during the week, the most since Jan 4.

Investors sold US$9.74 billion and US$1 billion worth of large-, and mid-cap equity finds, respectively, though small-cap funds attracted just US$97 million.

Industrials and real estate funds each suffered about US$200 million worth of net selling, while investors also pulled US$333 million out of healthcare funds. Meanwhile, consumer discretionary funds obtained a net US$512 million in inflows.

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Meanwhile, US bond funds saw a net US$831 million worth of withdrawals after two weeks of net buying in a row.

Investors exited US short/intermediate investment-grade, high yield, and loan participation funds worth US$4.1 billion, US$1.8 billion, and US$1.67 billion, while securing US short/intermediate government and treasury funds of US$5.46 billion. REUTERS