金融市场

Nearly $90bn pours into US money market funds ahead of expected rate cuts

Institutional investors look to lock in higher yields as market prepares for Fed to lower borrowing costs
Market participants said they expected the Fed’s cuts to be gradual rather than rapid, meaning money fund yields would drift lower over an extended period of time

Almost $90bn poured into US money market funds in the first half of August, as investors sought to lock in attractive yields that could outlast an expected interest rate cut by the Federal Reserve next month.

Money market funds, which hold cash and short-dated assets including government debt, pulled in net inflows of $88.2bn between August 1 and August 15, according to flow tracker EPFR — the highest figures for the first half of a month since November last year.

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