Safe yield

US money market Funds have been seeing record inflows since the pandemic and reach new all-time highs in AUMs. This is not surprising with an overnight deposit rate above 4.5% and a 3 months T-Bill approaching 4.7%. Let’s not forget that these yields are nominal with an inflation rate running at 6.5% y-o-y and new CPI numbers coming out next week, but still. For investors, short term bonds become a real alternative to longer duration financial assets.