U.S. money funds saw hefty inflows in the May 9 week
U.S. money funds saw hefty inflows in the May 9 week, with prime money funds rising $6.9 B, thanks to an $8.1 B surge in institutional funds. That's the largest inflow in the latter account since mid-2016 according to ICI, and it's likely a function of repatriation, according to a number of sources. It brought the total up to $203.6 B, and it's the highest since September 2016, just ahead of the SEC's reforms went into effect in October and funds flowed out of those accounts and into government only funds. Meanwhile, government funds declined $2.4 B last week amid a $3.58 B drop from institutional accounts. These institutional inflows into prime accounts could be behind the dollar's strength since the tax date.