Global Money Market Funds See Largest Inflows in Nearly a Month Amid Middle East Tensions

15:44 - 4.09.2026


September 4, Fineko/abc.az. Global money market funds registered their largest weekly inflows in nearly a month during the week ended September 2, as mounting U.S.-Iran geopolitical friction and a broad global bond selloff prompted investors to seek shelter in cash and short-duration assets.

According to fund flow data, U.S. money market fund assets alone surged by $44.75 billion over the week to reach a near-record $7.98 trillion. Rising energy prices and renewed worries over persistent inflation have fueled market expectations that major central banks may maintain higher-for-longer interest rate paths. Consequently, portfolio managers and institutional investors reduced their exposure to equities and long-term debt, redirecting capital into highly liquid money market vehicles.