NEW YORK (Reuters) - U.S. money market fund assets recorded their biggest weekly increase in 10 months following a wild week of market volatility fueled by anxiety about global trade tension and political turmoil in Europe, data from the Money Fund Report showed on Wednesday.
Assets of money market funds, which are considered nearly as safe as bank accounts, grew by $34.65 billion to $2.832 trillion in the week ended June 5, the Money Fund Report said.
That marked the biggest rise since the week of Aug. 9, 2017, when money fund assets increased by $37.88 billion.
Last August, financial markets grew turbulent amid the heated exchange between the United States and North Korea over Pyongyang’s nuclear program.
In the latest week, taxable money market fund assets climbed $35.04 billion to $2.692 trillion, while tax-free assets decreased by $389.80 million to $139.65 billion, according to the report, published by iMoneyNet.
The iMoneyNet’s Money Fund Average 7-Day Simple Yield for All Taxable money-market funds increased to 1.42 percent from 1.40 percent the week before, while the iMoneyNet Money Fund Average 7-Day Simple Yield for All Tax-Free and Municipal money-market funds fell to 0.66 percent from 0.80 percent last week.
Reporting by Richard Leong; Editing by Bill Berkrot