Money-Market Fund Assets Crash 'Most Since Lehman' As Bank Deposits Rose Last Week
(Additional comments)
(This is munee being taken out of MMF you can see it in the drop of the usage of the NY Fed Reverse Repo Facilty)
Money-market funds saw the largest weekly outflow since Lehman (Q3 2008), plunging $99BN… The outflows were all from institutional funds (retail funds saw another inflow)… Presumably this was driven by tax-extension deadline payments - or else something serious is happening. (Ahhh no and they used THAT excuse-tax extension last year as well)
Total bank deposits - on a seasonally-adjusted basis - dropped for the second week in a row (-$$8.7BN)… Non-seasonally-adjusted, total deposits saw inflows for the 3rd week in a row (+$20.6BN)… Is this the start of a major reversal… or just the one-off tax flows? (Come on ZH it ain’t that hard……see above on Reverse Repo). Domestically, excluding foreign banks, there were deposit inflows on both an SA and NSA basis…Which has narrowed the delta between SA and NSA deposit outflows since SVB to just $38BN (the outflows are still over $200BN total).
On the other side of the ledger, bans increased their lending volumes modestly last week - after 2 weeks of shrinkage - op around $9BN… The Fed's balance sheet shrank by around $19BN last week,but usage of its emergency funding facility for banks remained at record highs around $109BN
Bank reserves at The Fed and US equity market appear to be converging back together… The key warning sign continues to trend lower (Small Banks' reserve constraint), supported above the critical level by The Fed's emergency funds (for now). Notably above, Large bank cash is surging (as those money-market fund outflows move?) - is it time to sacrifice another small bank for the greater good? (Ummm yes…yes it is but pick ‘em as they all did the same shit-some had hedges but many did not and the big clue that it IS time is this) Finally, if you're wondering why regional banks were clubbed like a baby seal this week… wonder no more…They have a $109BN (at least) hole in their balance sheets that needs to be filled by March-ishand with rates going higher, good luck!
https://www.zerohedge.com/markets/money-market-fund-assets-crash-most-lehman
Currently down for “maintenance” and not untypical but really niggas!…couldn’t do this in the middle of night or early morning hours?
New York Reverse Repo Facility
https://www.newyorkfed.org/
Click on ‘Markets and Policy Implementations’ and select Reverse Repos under Desk Operations.