Money-market funds saw inflows for the 7th week of the last 8 with a $42BN jump (the most in 2 months) to a new record high of $5.625TN... {chart} The inflow was dominated by a $24BN increase in Institutional fund assets while Retail also saw a sizable $17.7BN increase... {chart} And the divergence between money-market fund assets and bank deposits continues to grow... {chart} And while we actually saw huge deposit outflows (on a non-seasonally-adjusted basis) - despite The Fed's seasonally-adjusted deposits increase - The Fed balance sheet shrank by another $20BN last week to its smallest since June 2021... {chart} ... (full story)