{"id":1461343,"date":"2024-03-07T21:44:00","date_gmt":"2024-03-08T02:44:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1461343"},"modified":"2024-03-07T21:44:00","modified_gmt":"2024-03-08T02:44:00","slug":"money-market-fund-assets-hit-new-record-high-as-feds-bank-bailout-fund-set-to-expire","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/money-market-fund-assets-hit-new-record-high-as-feds-bank-bailout-fund-set-to-expire\/1461343\/","title":{"rendered":"Money-Market Fund Assets Hit New Record High As Fed’s Bank Bailout Fund Set To Expire"},"content":{"rendered":"

Money-Market Fund Assets Hit New Record High As Fed’s Bank Bailout Fund Set To Expire<\/span><\/p>\n

\n

Despite soaring stocks, money-market fund assets rose to a fresh record high for the second straight week, adding $19BN to $6.08TN (and almost $70BN in two weeks)…<\/strong><\/p>\n

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

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

But, but, but,\u00a0<\/span>‘money on the sidelines’ and stuff<\/em><\/a>?<\/p>\n

In a breakdown for the week to March 6,\u00a0government funds<\/strong> – which invest primarily in securities like Treasury bills, repurchase agreements and agency debt – saw assets rise to $4.9 trillion, a $21.6 billion increase.\u00a0<\/strong><\/p>\n

Prime funds<\/strong>, which tend to invest in higher-risk assets such as commercial paper, meanwhile, saw assets fall to $1.02 trillion, a $3.6 billion drop,<\/strong> driven by an exodus from the institutional side.<\/p>\n

Institutional funds saw a modest $3.6BN inflow while Retail funds saw $15.1BN inflow…<\/strong><\/p>\n

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

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

The Fed’s balance sheet shrank by $39BN last week to its lowest since Feb 2021…<\/p>\n

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

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

QT shows no signs of tapering yet with $29.6BN in securities released last week, to the lowest since March 2021, just above $7TN…<\/p>\n

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

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

The Fed’s Reverse Repo facility saw further liquidity drawn-down,<\/strong> plunging fast very recently, on target for a March meeting with the x-axis…<\/p>\n

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

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

Bank reserves at The Fed were flat on the week with equity market cap as dramatically decoupled as it was in July of last year…<\/p>\n

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

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

Finally, The Fed’s bank bailout facility (BTFP) is set to expire in the next week (but bear in mind these are all one-year term loans). It ticked up by $548MM last week holding around the $164BN level…<\/p>\n

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

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

Powell today said he was trying to destigmatize the discount window (because that is where all this crap is going to end up)…<\/p>\n

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

Reminder, bonds are trading higher in yield, lower in price, since the SVB crisis (which means what for the banks holdings?)<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 03\/07\/2024 – 16:44<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/money-market-fund-assets-hit-new-record-high-feds-bank-bailout-fund-set-expire<\/a>\u00a0<\/p>\n

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

Money-Market Fund Assets Hit New Record High As Fed’s Bank Bailout Fund Set To Expire Despite soaring stocks, money-market fund assets rose to a fresh…<\/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-1461343","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-68a3","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1461343","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=1461343"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1461343\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1461343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1461343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1461343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}