Money market funds saw massive inflows for the second straight week (+$81.6BN), pushing the total assets under management to a new record high of $6.66TN...

And while MM funds surged, total US bank deposits dropped modestly (-$7.5BN on a seasonally-adjusted basis)...

Though interestingly, on a non-seasonally-adjusted basis, total deposits rose by a modest $3.7BN during the week ending 11/6 (which included the election)...

Excluding foreign deposits, US banks saw domestic deposits rise on both an SA (+$12BN) and NSA (+$16.7BN) basis...

Loan volumes shrank significantly during election week...

Finally, the decoupling between bank reserves at The Fed and the total US equity market capitalization has reached an extreme...

With liquidity being drawn down from The Fed's reverse repo facility at a pace, we wonder how long that spread can be maintained.

... a new record high for MM fund assets.
{ai:summary}Money market funds experienced significant inflows for the second consecutive week, gaining $81.6 billion and reaching a record high of $6.66 trillion in total assets. In contrast, total US bank deposits saw a slight decline of $7.5 billion on a seasonally-adjusted basis, though they rose modestly by $3.7 billion non-seasonally adjusted.Additionally, domestic deposits increased for US banks, while loan volumes decreased during the election week. There is growing concern about the widening gap between bank reserves at the Federal Reserve and total US equity market capitalization, raising questions about future liquidity. #economy

Election Week Saw Huge Money-Market Fund Inflows, Bank Deposits Rise, Loan Volumes Shrink

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