Money market mutual funds rebounded strongly in the week ended Feb. 7, after the largest weekly selloff in two years the week before.

Assets in money funds jumped 2.7%, to $797.07 billion, according to the Investment Company Institute.

Money funds gained $22 billion in assets, the largest single one-week inflow since July 1992, according to the Washington-based trade group.

Retail funds increased by $6.54 billion for the week; institutional portfolios gained $14.9 billion.

"Institution investors saw higher yields in money markets after the Fed cut short-term rates," a spokeswoman for the institute said.

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