After an unexpected outflow last week, US money market funds saw inflows this week - albeit a minor $4.22 billion - with the total assets now having hovered around record highs for 7 weeks...

Retail funds saw their 13th straight week of inflows (+$7.2bn) while institutional funds saw a $3bn outflow...

Money-market fund assets (rising) and bank deposits (also rising) continue to diverge (as cash piles into NVDA calls?)...

The Fed's balance sheet continued to shrink below pre-SVB levels, falling $22.4 billion last week to its smallest since Aug 2021...

QT reaccelerated last week with The Fed selling $21.4 billion in securities...

Usage of The Fed's Bank Term Funding Program facility rose once again last week (up $622mm), hovering around the record high level of $103 billion...

The breakdown from&nbsp;<a href="https://www.federalreserve.gov/releases/h41/">The Fed's H.4.1 table</a>...

Finally, we note that the US equity market capitalization has completely decoupled from the declining trend in bank reserves at The Fed...

Which is more likely to catch down (or up) to which?

...the US equity market capitalization has completely decoupled from the declining trend in bank reserves at The Fed...
{ai:summary}US money market funds saw a minor inflow of $4.22 billion after an unexpected outflow. Retail funds had their 13th straight week of inflows, while institutional funds experienced an outflow of $3 billion. Money-market fund assets are rising while bank deposits are also increasing. The Fed's balance sheet has shrunk below pre-SVB levels and the usage of the Bank Term Funding Program facility is at a record high. The US equity market capitalization has decoupled from the declining trend in bank reserves at The Fed. #economy

Emergency Bank Bailout Facility Usage Remains At Record Highs; Fed 'QT' Accelerates

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