Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Exodus: Tax Week Sees Massive Outflow From ‘Cash’
Meanwhile, from the "worth mentioning" files...
The tax deadline appears to have prompted one of the largest outflows from money market funds on record.
According to the latest update from ICI, out Thursday evening, quite a bit of the "sideline cash" that previously resided in government funds came pouring out in the week through Wednesday. Specifically, they bled $76.4 billion during the week. It was the ninth consecutive outflow from government funds.
Prime funds, meanwhile, saw $6.4 bill
Well duh. The filing deadlines (two) were moved to July 15. But a lot of people simply parked what they owed in money funds until their bills came due. As noted, that was not TINA money.
Now back to your regularly scheduled show.
It was funny watching media outlets try to parse this last night. You could tell nobody wanted to touch it because they didn’t know how to frame it with the tax date and they were all scared to say something wrong. They don’t have the luxury of starting off with something like “Meanwhile, from the ‘worth mentioning’ files”
I wish I could say that I had thought of this before you posted it, but I didn’t. And it was right in front of me to see. But that won’t stop me from ridiculing others who missed it as well!!
One factor adding to these quantities is the estimated tax deadlines are really on 3rd payment due Sept 15 so I assume that would influence all this ….