MMF AUM Surges, RRP At 31-Month Low, Free Money Fed Arb Still Enticing

Money market funds took in more than $78 billion in the week to January 3, the first update of 2024 showed. It was the largest weekly inflow since SVB collapsed, and pushed total AUM to a new record high just short of $6 trillion. Given the timing (i.e., around year-end), it's probably unwise to read a lot into this particular update, but it certainly merits mention. $64 billion flowed into government funds, split between retail and institutional. Retail prime products saw more than $9 bill