Global money market funds attracted $166.4 billion in inflows in the week ended October 7, their largest weekly intake since April 2020.

The surge could put cash-like ETFs such as the iShares 0-3 Month Treasury Bond ETF (NYSE:SGOV) and the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:BIL) in focus, while sustained demand for government bonds is also drawing attention to longer-duration funds.

According to The Kobeissi Letter, U.S. money market funds alone attracted $72.3 billion during the week, lifting their total assets to a record $8 trillion. Assets have increased by $3 trillion since 2023.

Global bond funds attracted another $33.8 billion, including $16.2 billion into Treasury funds. Treasury funds recorded their 15th consecutive weekly inflow, marking their largest weekly intake since April 2025, according to the data cited by The Kobeissi Letter.

The flows come amid a sharp sell-off in the bond market as rising bond yields and persistent inflation concerns push investors toward safer assets.

The 10-year U.S. Treasury yield briefly climbed to 5.3645% on October 7, its highest level in roughly 24 years, as inflation fears and concerns about government borrowing weighed on bonds. Yields subsequently retreated following a strong Treasury auction.

SGOV, BIL Attracts Investors Seeking Short-Term Treasury Exposure

Short-duration Treasury ETFs let investors earn income from government securities without taking on the same interest-rate risk as longer-maturity bonds.

The SGOV ETF, which holds U.S. Treasury bills with maturities of three months or less, had attracted $56.3 billion in net inflows year to date through October 12, according to ETFIQ data. Its assets totaled about $115.2 billion, with an annual expense ratio of 0.09%.

SGOV also recorded $347 million in inflows on October 7, followed by $392 million on October 8 and $191 million on October 9, according to the same data.

BIL offers similar exposure through Treasury bills with maturities ranging from one to three months. It also recorded $152 million in net inflows over the five days through Oct 9.

Both ETFs can serve as cash-management tools, but their market prices can fluctuate, and their returns don't match those of money market mutual funds.

TLT Offers a Different Bet on the Bond Market

Investors looking beyond short-term yields may also be watching the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), which holds longer-dated U.S. Treasury securities.

The Kobeissi Letter reported on Oct 5 that TLT attracted $1.7 billion in inflows in the week before its October 5 post, its fourth-largest weekly intake since June 2024.

However, TLT presents a different risk profile from SGOV and BIL. Long-duration Treasury prices are more sensitive to interest-rate changes, so further yield rises could drive significant price declines. Conversely, falling yields could support a stronger price recovery.

The Bigger ETF Question

The record money market inflows do not necessarily signal an outright retreat from equities. Investors may simply be taking advantage of attractive short-term yields while waiting for greater clarity on inflation, monetary policy and bond-market volatility.

For ETF investors, the distinction is important. SGOV and BIL offer short-term Treasury exposure, while TLT represents a more aggressive bet on the direction of longer-term interest rates.

The next signal to watch is whether money continues flowing into cash-like ETFs and Treasury funds as yields rise, or whether a sustained decline in yields encourages investors to extend duration and take on more risk.

For now, the data point to a powerful demand for liquidity and government debt, but not yet a definitive shift away from stocks.