{"id":1406987,"date":"2023-08-17T20:43:23","date_gmt":"2023-08-18T00:43:23","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1406987"},"modified":"2023-08-17T20:43:23","modified_gmt":"2023-08-18T00:43:23","slug":"banks-usage-of-emergency-fed-funds-hits-new-record-high","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/banks-usage-of-emergency-fed-funds-hits-new-record-high\/1406987\/","title":{"rendered":"Banks’ Usage Of Emergency Fed Funds Hits New Record High"},"content":{"rendered":"

Banks’ Usage Of Emergency Fed Funds Hits New Record High<\/span><\/p>\n

\n

Money-market funds saw inflows for the 5th straight week <\/strong>(almost $40 billion this week) to a new record <\/strong>high of $5.57 trillion. That was the biggest weekly inflow in 6 weeks…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Both retail and institutional funds saw inflows ($15.6 BN and $24.1 BN respectively)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The decoupling between money-market fund inflows and bank deposits continues…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

After last week’s modest growth in The Fed’s balance sheet, it plunged by $62.5BN last week (the most since early April and second most since July 2020)<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

With regard to QT, The Fed sold down $42BN of its securities…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Usage of The Fed’s emergency bank lending facility (BTFP) rose by $378 million to a new record high of $107.2 BN…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The breakdown from The Fed’s H.4.1 table…<\/p>\n

Total securities held fell by $42BN (dominated by TSY selling)<\/p>\n

Discount Window increase $55MM to $1.966BN<\/p>\n

BTFP new record $107.2BN, up $0.3BN<\/p>\n

Other credit extensions (FDIC loans) down $3.8BN to $141.6BN<\/p>\n

<\/a><\/p>\n

Is it time for US equity market caps to catch down to bank reserves at The Fed?<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Finally, some food for thought, the last time yields were here and accelerating higher this fast, we saw the mini-banking crisis exposed a quarter later as reality hit…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Bearing in mind that in less than 7 months, the banks will have to fend on their own – absent the $100-billion-plus facility from The Fed – once wonders just where that magical balance sheet fix will come from? A collapse in yields as the economy enters depression? Or will The Fed just expand its balanced sheet again?<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 08\/17\/2023 – 16:43<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/banks-usage-emergency-fed-funds-hits-new-record-high<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Banks’ Usage Of Emergency Fed Funds Hits New Record High Money-market funds saw inflows for the 5th straight week (almost $40 billion this week) to…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1406987","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1406987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1406987"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1406987\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1406987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1406987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1406987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}