GSY - Despite An Upward Shift In The Treasury Yield Curve Investors Favor Treasury Funds In March So Far

• Treasury yields have been on the rise for three consecutive weeks, with the 10-year Treasury yield finishing Refinitiv Lipper’s fund-flows week ended March 23, 2022, at 2.32% after hitting an almost four-year high of 2.38% the day before.
• And while historically investors generally chose money market funds during times of equity and fixed income volatility, inflationary concerns and a decline in purchasing power have contributed to investors being net redeemers of money market funds, withdrawing $2.9 billion this week and $158.0 billion year to date.
• So, while Fed officials are collectively much more hawkish now, investors generally understand that accommodative interest rate policy remains supportive, and rates are likely to stay relatively low.

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