Money market funds saw the largest inflows in two months in the week to September 6, data released late Thursday in the US showed.

The near $42 billion haul was the eighth inflow in nine weeks.

Total assets now stand at $5.625 trillion, a new record.

This week’s influx was spread across investor types and products, led by more than $22 billion to institutional government.

The YTD inflow for 2023 now stands at $890 billion.

As usual, the focus is on the MMF-RRP-T-bill nexus. Money market fund demand for bills apparently waned in August. RRP balances, which had declined steadily since peaking ahead of the debt ceiling deal, flattened out.

That wasn’t problematic for Treasury, which continued to find ready buyers for a tsunami of bill supply, but there’s some evidence the market is getting full. The BTC ratio on Thursday’s four-week sale was below the three-month average, for example.

There’s a give and take: If bill yields rise commensurate with less voracious demand, that could coax money market funds out of the RRP facility.

Some $1.535 trillion was parked in the RRP garage on Thursday.

For those who might’ve missed it, I encourage readers to peruse “Renewed RRP Decline Is Sigh Of Relief In Some Corners,” published here earlier this week.

Dealer bill holdings were $55.6 billion at the end of last month, the latest update from the New York Fed showed.

That was down slightly from the prior week, and remains less than half the record highs seen in early July.

Meanwhile, borrowing from the Fed’s Bank Term Funding Program (the backstop established the wake of SVB’s failure in March) crept up again, hitting another new record at almost $108 billion.

Discount window usage fell, and remains minimal.

Total borrowing from the two facilities receded slightly to just under $110 billion.