First American Funds' "Quarterly Portfolio Manager Commentary" talks about "major factors influencing money market funds this quarter." They write, "The second quarter of 2021 continued on a positive tone with COVID-19 vaccinations gaining momentum, strong economic data and overall market optimism continuing to spread. However, front-end yields remained challenged as technical forces pushed additional cash into the system coupled with the FOMC's stimulative monetary policy. The money market industry remained flush with cash while U.S. Treasury bill and Repo levels remained entrenched at the bottom of the FOMC's fed funds rate target. The Fed made key technical adjustments to the IOER and RRP, providing five bps of rate relief as the RRP continued to absorb excess cash with the facility nearing $1 trillion by quarter end." Discussing the First American Prime Obligations Fund,the U.S. Bancorp Asset Management PMs explain, "Credit spreads remain tight, reflecting the trading ranges and yields one should expect in the current low rate environment. Considering an uncertain regulatory backdrop, a flat yield curve and a conservative approach to cash flows, the fund was positioned with strong portfolio liquidity metrics influenced by fund shareholder makeup. Management continued to employ a heightened credit outlook maintaining positions presenting minimal credit risk to the fund's investors. Under the current market conditions, the main investment objective was to maintain liquidity and judiciously and opportunistically enhance portfolio yield based on our economic, investor cash flow, credit and interest rate outlook. We believe the credit environment and relative fund yields make the sector an appropriate short-term option for investors." On the First American Government and Treasury Funds, they comment, "Treasury and government funds continued to see inflows as monetary system cash balances grew. Treasury Bill / Note supply decreases resulting from the reduction in U.S. Treasury general account pushed Government-Sponsored Enterprise (GSE) and Treasury yields to a trading range near the bottom of the FOMC's fed funds target. Management continued to focus on securing incremental long-term yield when rangebound trading opportunities arose, seeing little downside to extension, anticipating a low yield environment for the foreseeable future. Throughout the quarter, we also capitalized on opportunities in floating-rate investments that made economic sense and felt would benefit shareholders over the securities holding period. We anticipate that investment strategy will remain constant until we near the end of the Fed accommodation cycle." Finally, they state, "In the coming quarters, yields will stay depressed as the U.S. progresses through the impacts of the COVID-19 pandemic and the FOMC's commitment to easy monetary policy. It appears the yield on non-government debt has bottomed, but supply / demand imbalances resulting from excess system liquidity could push yields marginally lower. We believe that prime money market fund yields are near a floor as pre-pandemic holdings have matured and the Fed has re-established a floor on short-term yields. The institutional and retail prime obligations funds will remain reasonable short-term investment options for investors seeking higher yields on cash positions while assuming minimal credit risk. Yields in the GSE and Treasury space will remain influenced by Fed policy and Treasury bill / note supply.... Management will continue to capitalize on investment opportunities, in all asset classes and indexes, based on domestic and global economic market data as well as changes to Fed rate expectations."

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