Investment flows into US money market funds surged to the highest in over a year in the week to May 26, on caution as investors awaited US data expected to offer clues on inflation.

Refinitiv Lipper data showed US money market funds drew in a net $66.6 billion in the week, the biggest amount since April 2020, with investors concerned about a rise in inflation levels and the impact on the direction of US monetary policy.

Meanwhile, US equity funds attracted a net $5.06 billion, as stocks rallied somewhat after US Federal Reserve officials reaffirmed a dovish monetary policy stance.

Among equities, investors purchased value funds worth $2.4 billion, while growth funds faced outflows worth $859 million.

US bond funds saw net purchases of $4.82 billion, the highest in three weeks.

Investors bought $2.35 billion in US taxable funds and $1.31 billion in municipal bond funds.

US inflation-protection funds also had an inflow of $641 million, which was their fourth successive inflow.