US money-market funds reached a record $8.271 trillion in assets as investors fled to safety amid Middle East tensions. Crane Data LLC reported $49 billion flowed into these funds in the week ending March 3, with $18.5 billion alone on Tuesday following US-Israeli strikes on Iran. The surge pushed 2026 inflows past $162 billion as Treasury yields declined.

TD Securities strategist Jan Nevruzi described a clear "dash to cash" as geopolitical uncertainty drove investors toward haven assets. Federated Hermes' Deborah Cunningham noted broader anxieties about Federal Reserve policy, economic conditions, and geopolitics are pushing capital into safer harbors. Corporate treasurers are also rotating from direct securities into cash products to capture yield more efficiently.

The timing coincides with tax season, with refunds running about 10% higher this year according to Deutsche Bank. Early filers receiving larger refunds are channeling cash back into money-market funds. This seasonal pattern typically reverses in March and April when taxpayers who owe money delay filing until closer to the April 15 deadline.