Cash Is King Again? Record Money Market Inflows Put These Treasury ETFs on the Radar

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.

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,… pic.twitter.com/7tmZ5FBK9x

— The Kobeissi Letter (@KobeissiLetter) October 13, 2026

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.

Photo: Shutterstock/ William Potter