Money market funds saw their second-largest inflow since March’s regional bank drama in the week to November 1, data released Thursday in the US showed.

The $62.68 billion haul came on the heels of a $25 billion influx the prior week.

Money funds have now recouped virtually all of the October 18-week tax-related outflow, which represented the biggest exodus since Lehman.

Total assets are now just barely below record highs hit early last month. The bulk of the inflow ($54 billion) went to government funds.

There’s still no obvious reason to believe money fund assets have peaked. As an asset class, cash is more viable than it’s been in decades, risks are myriad (notwithstanding simultaneous rallies for stocks and bonds on Wednesday and Thursday) and in many cases, bank deposit rates are still miles below yields on government money funds.

Swollen money market fund AUM has helped immeasurably (I guess technically it is measurable, but you know what I mean) with Treasury’s post-debt ceiling deal cash rebuild. Money funds did a lot of the heavy lifting to absorb bill supply.

The TBAC minutes released this week described “continued robust demand” for bills while reiterating “comfort” with Treasury keeping the bill share of total marketable debt above the recommended range. The refunding announcement showed Treasury plans to keep bill auction sizes at current levels until later this month, before reducing the size of short-dated tenors in December.

Falling odds of another Fed hike should help demand through the RRP channel. If the offering rate there is unlikely to rise further, investors should be comfortable extending duration.

There was $1.055 trillion parked in RRP on Thursday, a new two-year+ low.

Meanwhile, borrowing from the Fed’s Bank Term Funding facility (the backstop established in SVB’s wake) was essentially unchanged this week at $109.07 billion. Discount window borrowing slipped back below $3 billion.