NEW YORK (Reuters) - Investors and corporate treasurers poured cash into U.S. money market funds, lifting their assets to the highest levels in eight weeks, data from the Money Fund Report released on Wednesday showed.
Money fund assets grew by $23.87 billion to $2.827 trillion in the week ended Aug. 7, just shy of the $2.828 trillion in the week of June 13.
The rise in money fund assets coincided with the growing supply of Treasury bills as the government has been ramping its borrowing to finance its budget deficit.
Money funds are major buyers of T-bills and other short-term debt.
Taxable money market fund assets increased by $25.20 billion to $2.697 trillion, while tax-free assets decreased by $1.33 billion to $130.16 billion, according to the report, published by iMoneyNet.
iMoneyNet’s money fund average seven-day simple yield for All taxable money-market funds was unchanged in the latest week at 1.56 percent, while its average seven-day simple yield for tax-free and municipal money-market funds jumped to 0.80 percent from 0.58 percent last week.
Reporting by Richard Leong; Editing by Marguerita Choy