{"id":1428679,"date":"2023-09-21T20:40:02","date_gmt":"2023-09-22T00:40:02","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1428679"},"modified":"2023-09-21T20:40:02","modified_gmt":"2023-09-22T00:40:02","slug":"fed-balance-sheet-plunges-by-most-in-over-3-years-as-retail-money-market-inflows-continue","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/fed-balance-sheet-plunges-by-most-in-over-3-years-as-retail-money-market-inflows-continue\/1428679\/","title":{"rendered":"Fed Balance Sheet Plunges By Most In Over 3 Years As Retail Money-Market Inflows Continue"},"content":{"rendered":"

Fed Balance Sheet Plunges By Most In Over 3 Years As Retail Money-Market Inflows Continue<\/span><\/p>\n

\n

Money market funds was outflows of over $7BN last week – the biggest weekly outflow since July – inching the total assets back from record highs…<\/p>\n

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

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

The net outflow was driven by institutional funds losing over $14.3BN (while retail funds saw $7.3BN inflows – the 22nd straight week of retail money market fund inflows<\/strong>)…<\/p>\n

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

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

Is the decoupling between bank deposits and money-market funds beginning to converge?<\/p>\n

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

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

The Fed’s balance sheet plunged by almost $75BN last week – its biggest weekly drop since July 2020<\/strong><\/p>\n

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

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

With regard to The Fed’s QT program, it sold down $26BN in securities last week<\/p>\n

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

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

Banks’ usage of The Fed’s emergency funding facility remains around $108BN <\/strong>(a modest decline on $394mm last week)…<\/p>\n

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

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

The full breakdown shows a big slidew in ‘other credit extensions’<\/p>\n

QT – notes and bonds – declined by $17BN to $4.238TN<\/strong><\/p>\n

MBS declined by $4BN to $2.499TN<\/p>\n

Discount Windows increased by $0.4BN to $3.1BN<\/p>\n

BTFP dropped by $0.4BN to $107.6BN<\/p>\n

Other credit extensions dropped by $48BN to $85BN<\/strong><\/p>\n

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

The gap between bank reserves at The Fed and the US equity market cap diverged again…<\/p>\n

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

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

Finally, we leave you with one thought – in 6 months and counting, America’s ‘smaller’ banks will need to find that $100-billion plus from somewhere as that is when the BTFP bailout program ends (theoretically). Will regional bank balance sheets be stabilized by then?<\/p>\n

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

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

Given the current bloodbathery in bond-land, we suspect we will know sooner rather than later.<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 09\/21\/2023 – 16:40<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/fed-balance-sheet-plunges-most-over-3-years-retail-money-market-inflows-continue<\/a>\u00a0<\/p>\n

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

Fed Balance Sheet Plunges By Most In Over 3 Years As Retail Money-Market Inflows Continue Money market funds was outflows of over $7BN last week…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1428679","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5ZFd","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1428679","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=1428679"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1428679\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1428679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1428679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1428679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}