The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") late last week, and among the 4 tables it includes on money market mutual funds, the First Quarter 2026 edition show that Total MMF Assets increased by $99 billion to $8.290 trillion in Q1'26. The Household Sector, by far the largest investor segment with $5.419 trillion, saw the biggest asset increase in Q1, followed by Other Financial Business (formerly Funding Corps) and Nonfinancial Corporate Business. The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also showed noticeable increases for the Exchange-traded Funds and Rest of the World categories in Q1 2026.
Households, Nonfinancial Corporate Business, Other Financial Business, Rest of the World, Nonfinancial Noncorporate Business, Exchange-traded funds, State & Local Governments and State & Local Govt Pension Funds categories saw asset increases in Q1, while Property-Casualty Insurance, Life Insurance Companies, Private Pension Funds and Mutual Funds saw asset decreases last quarter. Over the past 12 months, the Household Sector, Nonfinancial Corporate Business and Other Financial Business categories showed the biggest asset increases, while Mutual Funds saw the only asset decrease.
The Fed's "Table F521.s," "Money Market Fund Shares," shows that total assets increased by $99 billion, or 1.2%, in the first quarter to $8.290 trillion. The largest segment, the Household sector, totals $5.419 trillion, or 65.4% of assets. The Household Sector increased by $90 billion, or 1.7%, in the quarter. Over the past 12 months through March 31, 2026, Household assets were up $625 billion, or 13.0%.
Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $1.102 trillion, or 13.3% of the total. Assets here increased by $4 billion in the quarter, or 0.4%, and they've increased by $120 billion, or 12.2%, over the past year. Other Financial Business was the third-largest investor segment with $604 billion, or 7.3% of money fund shares. This category rose $10 billion, or 1.8%, in the latest quarter. Other Financial Business, which we believe includes Securities Lending, has increased by $68 billion, or 12.6%, over the previous 12 months.
The Private Pension Funds category was the fourth-largest investor segment with $230 billion, or 2.8%, while the fifth-largest segment, Rest of the World, held $229 billion (2.8%), and the sixth-largest category, Mutual Funds, held $210 billion (2.5%). Nonfinancial Noncorporate Business held $157 billion (1.9%), Life Insurance Companies held $112 billion (1.3%), State & Local Governments held $81 billion (1.0%), Exchange-traded Funds held $59 billion (0.7%), Property-Casualty Insurance held $55 billion (0.7%), and State & Local Govt Pension Funds held $32 billion (0.4%) according to the Fed's Z.1 breakout.
The Fed's "Flow of Funds" Table S123.s shows "Money Market Mutual Funds" largely invested in "Loans (Security Repurchase Agreements)" with $2.932 trillion, or 35.4%, and "Debt Securities," or Credit Market Instruments, with $5.001 trillion, or 60.3% of the total. Debt securities include: Open market paper ($302 billion, or 3.6%; we assume this is CP), Treasury securities ($3.426 trillion, or 41.3%), Agency and GSE-backed securities ($1.100 trillion, or 13.3%), Municipal securities ($150 billion, or 1.8%) and Corporate and foreign bonds ($22 billion, or 0.3%).
Another large MMF position in the Fed's series includes `Time and savings deposits ($283 billion, or 3.4%). Money funds also hold minor positions in Miscellaneous assets ($74 billion, or 0.9%) and Foreign deposits ($0.0 billion). Note: The Fed also lists "Variable Annuity Money Funds," which currently total $50 billion.
During Q1, Debt Securities were down $21 billion. This subtotal included: Open Market Paper (down $17 billion), Treasury Securities (down $91 billion), Agency- and GSE-backed Securities (up $87 billion), Corporate & Foreign Bonds (up $6 billion) and Municipal Securities (down $5 billion). In the first quarter of 2026, Loans (Security Repurchase Agreements) were down $62 billion, Foreign Deposits were unchanged, Time & Savings Deposits were up $31 billion, and Miscellaneous Assets were up $151 billion.
Over the 12 months through 3/31/26, Debt Securities were up $748 billion, which included Open Market Paper (down $22B), Treasury Securities (up $546B), Agencies (up $198B), Municipal Securities (up $12B), and Corporate and Foreign Bonds (up $15B). Foreign Deposits fell $1B and Time and Savings Deposits decreased $37B. Loans (Securities Repurchase Agreements) were up $111B over the year, while Miscellaneous Assets rose $70B.
The S123.s table shows `Stable NAV money market funds with $7,898 billion, or 95.3% of the total (up $66.5B or 0.8% in Q1 and up $843B or 12.0% over 1-year), and Floating NAV money market funds with $392 billion, or 4.7% (up $32.9B or 9.2% in Q1 and up $48B or 14.1% over 1-year). Government money market funds total $6.756 trillion, or 81.5% (up $65.8B or 1.0% in Q1 and up $755B or 12.6% over 1-year), `Prime money market funds total $1.382 trillion, or 16.7% (up $39.5B or 2.9% in Q1 and up $126B or 10.0% over 1-year) and Tax-exempt money market funds $152B, or 1.8% (down $6.0B or -3.8% in Q1 and up $10B or 7.2% last year).
Note that the Federal Reserve renumbered its Z.1 tables with the latest release. The report's "Release Highlights" says, "Effective with this release, all Z.1 Financial Accounts of the United States release tables have been renumbered to more closely align with the System of National Accounts (SNA) classification hierarchies for sectors and instruments." The Fed adds, "Money market fund shares (tables F521.t and F521.s) have been moved to immediately precede mutual fund shares (tables F522.1.t and F522.1.s)." The former Table L.206 is now F521.s, and the former L.121 "Money market funds" sector table is now S123.s.
