US Money Market Funds See Surge in Inflows Amid Debt Ceiling Fears

According to Reuters, US money market funds saw a surge in inflows in the week to May 24, with a net $39.9 billion of investments, the largest inflow in four weeks.

This is likely due to concerns over the approaching deadline for politicians to increase the country's debt ceiling.

Meanwhile, riskier equity funds saw outflows for the ninth straight week, with a total of $1.79 billion worth of investments sold.

Tech and consumer discretionary sectors received net inflows of $420 million and $289 million, respectively, while government bond funds attracted a fourth week of inflows and high yield funds drew $1.72 billion in investments.

Inflation protected funds suffered a sixth weekly outflow of $565 million.