Banks' Use Of Fed's Emergency Funds Hits New Record High; Retail Money-Market Fund Inflows Surge
Money-market funds saw a de-minimus $1.6BN outflow last week, still hovering near record highs at $5.7TN...
Source: Bloomberg
But, once again, retail funds saw inflows ($11.5BN) - no outflows since April - while institutional funds saw $13BN outflows...
Source: Bloomberg
Last week's mysterious surge in bank deposits leaves the spread to money-market funds back at record wides...
Source: Bloomberg
The Fed's balance sheet shrank by a modest $3.7BN last week
Source: Bloomberg
The Fed's QT program slowed dramatically last week with just a $1.9BN decline...
Source: Bloomberg
Usage of The Fed's emergency funding facility rose to a new record over $109BN... this week saw the biggest jump in the BTFP since July.
Source: Bloomberg
Fed balance sheet weekly change:
Discount Window drops by $200MM to $2.6BN
BTFP up $1.2BN to new record $108.9BN
FDIC loans (new credit extensions) down $5.5BN to $58.3BN
And finally, as we head into bank earnings tomorrow, a quick reminder...
Source: Bloomberg
That's a $109BN hole in their balance sheets that needs to be filled by next March.
And given the recent carnage in bonds...
Source: Bloomberg
...and it could be much worse.
