Money Market Assets Fall Below $3 Trillion

According to the Wall Street Journal, total assets in money-market funds have fallen below $3 trillion for the first time since late 2007. The catalyst for this development has been higher fed-funds rates. On Monday, the fed-funds rate went to 0.2% which was the highest level since July 1.

This development does not necessarily indicate that investors are looking to move back into the markets in search of riskier assets. Most of the money-market outflows have been heading into short term bond funds.