On Tuesday, October 13, 2026, market commentary publication The Kobeissi Letter reported significant inflows into global and US money market funds, signaling a shift towards safer investments. Posting on X, The Kobeissi Letter detailed the recent capital movements, stating, "BREAKING: Global money market funds attracted +$166.4 billion in inflows in the week ending October 7th, their largest weekly inflow since April 2020. US money market funds alone posted +$72.3 billion in inflows, lifting their total assets to a record $8.0 trillion. Since 2023, US money market fund assets have risen +$3.0 trillion. Meanwhile, global bond funds attracted +$33.8 billion in the week ending October 7th. Treasury funds accounted for +$16.2 billion, their 15th consecutive weekly inflow and the biggest weekly intake since April 2025. Investors are piling into risk-free investments as rates surge."
This notable influx into less risky assets coincides with a cautious period in institutional financial markets. Recent Gokhshtein Media coverage noted that JPMorgan's fixed income, currencies, and commodities (FICC) revenue missed consensus by 10.5%, pointing to softer institutional demand. Additionally, as JPMorgan and Goldman Sachs earnings reports tested the banking sector, the impending CPI data further contributed to a climate of investor prudence.
The Kobeissi Letter's analysis suggests that investors are actively seeking protection from potential market volatility or are responding to the appeal of higher interest rates by favoring more secure investments. This pronounced trend indicates a prevailing cautious sentiment across the market, directly attributed by the publication to the ongoing "rates surge." The sustained and strong inflows into Treasury funds particularly emphasize this preference for government-backed securities.
