the pile of cash parked at moneymarket funds climbed to a fresh record as investors sought higher rates extending the trend of moving away from lower paying us bank deposits with the federal reserve raising their main policy rate to its highest level in 16 years earlier this month in the most aggressive hiking cycle in decades shortterm rates above 5 continue to lure investors to moneymarket assets the latest influx comes amid signs of easing concerns over the stability among regional banks while investors weighed prospects for resolving the debtceiling impasse in washington that has plagued rates for securities maturing in june and late jul about 136 billion poured into us moneymarket funds in the week to may 17 according to data from the investment company institute total assets reached an unprecedented 534 trillion versus 533 trillion in the week to may 10 the week before about 183 billion in net new money flowed into the funds read more banks vying for deposits outbid by highyielding treasuries over the past week markets have focused on negotiations in washington to avoid a firstever default which treasury secretary janet yellen signaled could become a risk as soon as june 1 speaker kevin mccarthy said he expected the house to consider a deal as early as next week adding that negotiators were in a “much better place” a key ally of his however said a debt deal wasn’t close in a breakdown for the week to may 17 government funds which invest primarily in securities like treasury bills repurchase agreements and agency debt saw assets rise to 444 trillion a 955 billion increase prime funds which tend to invest in higherrisk assets such as commercial paper saw assets climb to 789 billion a 414 billion increase why us banks are hemorrhaging deposits to money funds quicktake