Global Money Funds Draw US$46.1 Billion as Risk Aversion Builds

London, 4 September 2026 – Global money-market funds attracted a net US$46.1 billion in the week through 2 September, their largest weekly inflow since early August, as investors increased cash holdings amid escalating geopolitical tension and a sell-off in government bonds. The shift highlighted growing demand for liquidity and capital preservation as markets reassessed inflation and interest-rate risk.

The move into cash coincided with renewed conflict involving the United States and Iran near the Strait of Hormuz. Brent crude rose to US$97.62 a barrel, its highest level in roughly six weeks, adding to concern that energy costs could slow the recent moderation in inflation. Higher oil prices can also compress corporate margins and weaken household purchasing power, complicating the outlook for both bonds and equities.