U.S. money funds raise $304 billion amid banking collapses and market volatility

Within three weeks, the government funneled $304 billion into money market funds to stabilize the situation amid banking collapses and investor concerns about the safety of their deposits in US regional banks. Money flows into US money market funds rose to a record high of $5.2 trillion as of March 29. Investors put their money into funds that offer high yields such as UFB Direct, CFG Community Bank and Sallie Mae. The increase in money market yields is associated with an increase in the interest rate by the US Federal Reserve and an increase in the yield of US Treasury bonds. Money market funds are more reliable savings havens than banks due to their short asset life.