Money-Market Inflows Hit New High As Banks Demand More From Fed’s Emergency Fund
September 14, 2023 | Tags: ZEROHEDGEMoney-Market Inflows Hit New High As Banks Demand More From Fed's Emergency Fund
Another week, another big inflow into money-market funds (of $17.7BN), pushing total assets to a new record high of$5.642TN. That is the 8th weekly inflow of the last 9 weeks...
Once again the inflows were dominated by Retail (which haven't seen an outflow since April) while institutional fund assets rose for the 3rd straight week...
Despite last week's bank deposit outflow, the gap to money-market fund assets remains vast...
The Fed's balance sheet shrank only marginally last week (-$2.5BN)...
Interestingly, with regard the QT program, The Fed sold $6BN of securities last week (bigger than the decline in the Fed balance sheet)...
Usage of The Fed's emergency bank funding facility rose once again (+$208M) to a new record high over $108BN...
Here is the detailed breakdown:
QT shrinks TSY holdings by $6BN to $4.982TN
Discount Window borrowings rise $0.6BN to $2.7BN
BTFP usage hits record high $108BN
Other credit extensions (FDIC loans) down $0.4BN to $133.4BN
The gap between bank reserves at The Fed and the US equity market cap is starting to narrow...
Tick, tock, banks!
You have six months to figure out how to clean up the $108 Billion hole in your balance sheet that you're currently paying The Fed's exorbitant rates to fill.