The Swiss firm’s Select Government Funds are expected to invest in high quality, short-term US government debt instruments.

Each new vehicle will accept investments from institutional and retail investors and compliment UBS’ Select Treasury Funds, which already invest in securities issued by the US Treasury.

The move comes as Vanguard, the biggest mutual fund provider, said last week it would reopen its treasury money market mutual fund to all investors, citing improved market conditions.

The recent US interest rate rise has been welcomed by money market fund investors as it signalled the end of an era of near-zero returns.

Even so, yields on most Treasury money funds are still running close to zero even after the Fed's first rate hike in nearly a decade.

Exchange traded fund data from Markit shows According to sovereign bond funds listed in Europe and America have seen around $10bn of inflows so far in January which puts the asset class on track for its best monthly inflow since February 2014. 

American investors have proven to be the most eager to ride this trend as the 88 government bond funds listed in the region have taken the lion’s share of inflows after attracting $8.5bn of new assets.

"Evolving our global liquidity product offering in the US is a critical component of our growth strategy in the Americas," said Blake Moore, head of the Americas for UBS Asset Management. 

In a statement, UBS said it is in the process of registering its new funds the US Securities and Exchange Commission.

Meanwhile, the firm's range of UBS Select Prime Funds, largely held by institutional investors, is expected to adopt floating net asset value pricing by October this year.