Money market funds are brimming with belongings proper now. The phase has hauled in $322 billion ov
Money market funds are brimming with belongings proper now. The phase has hauled in $322 billion over the previous six months, marking the quickest clip of development because the monetary disaster within the second half of 2008. Complete belongings rose to nearly $3.5 trillion, based on information from FactSet and Financial institution of America Merrill Lynch.
The cash market funds have witnessed inflows each month this yr barring April, with belongings rising in 9 of the previous 10 weeks. U.S.-China commerce tensions, world development slowdown and Brexit uncertainty saved the broader market edgy within the Might-August interval.
Fears of a protracted commerce warfare have raised considerations about an already softening world financial system. In consequence, the bond market is sending alerts of a recession within the U.S. financial system. As flight-to-safety dominated world markets, the benchmark 10-year U.S. Treasury be aware yield slumped.
Alternatively, the Fed had enacted a number of fee hikes from Dec 2015 until this July. The Fed’s tightening transfer saved the short-term bond yields on the upper facet, leading to an inversion in some key components of the yield curve. The 10-year yield fell…