Money market funds took in a massive $64 billion in the week to October 4, data released late Thursday in the US showed.

It was the largest weekly haul since March’s regional bank drama triggered a tidal wave of inflows.

Total assets now stand at $5.71 trillion, a new record high.

The lion’s share of the inflows were in the institutional government category, but retail investors poured $23 billion into money funds across government and prime products.

The big haul came during a week of acute volatility at the long-end of the Treasury curve. Government funds, where total assets now sit at $4.688 trillion, have no duration risk and no credit risk either. Unlike bank deposits, your counterparty is the federal government. Total YTD money fund inflows in 2023 now stand at $973 billion.

Treasury is still finding buyers for bills amid upsized auctions. Thursday’s four-week sale went swimmingly, for example. I suppose you could argue there are some signs of friction. A four-month sale this week saw a lower bid-to-cover and a higher discount rate, and the specter of another Fed hike in November showed up in lackluster metrics for an eight-week offering which traded just a handful of basis points above the RRP rate.

Speaking of RRP, balances fell to $1.265 trillion through Thursday, the lowest in over two years.

Say what you will (where that means cling to your dire narratives if you’re inclined), but RRP transformation has absorbed more than enough bill issuance to mitigate near-term reserve scarcity concerns.

As a quick aside, dealer T-bill holdings were $70.4 billion in the week to September 27, according to the latest update from the New York Fed. That was the highest since early July.

Meanwhile, usage of the Fed’s Bank Term Funding Program was little changed in the week to October 4, at $107.665 billion. Discount window borrowing was $2.77 billion, down from a three-month high of $3.2 billion the prior week.