For the second straight week, money market funds saw outflows, falling $18.2 billion - the biggest weekly decline since Xmas week 2022 (ex-tax day drop)...

And for the second straight week, all the outflows were institutional (-$24.89 billion) while retail funds saw a ninth straight week of inflows...

Is this related to the chase into tech stocks?

The money market fund outflow (which leads banks deposit data by a week), is interesting because it comes after banks saw a huge deposit outflow the prior week...

Having gone nowhere for two weeks, The Fed balance sheet shrank by $26.3 billion last week, basically back in line with pre-SVB levels...

As far as QT is concerned, The Fed sold a decent $19.4 billion of its assets, down to its lowest since August 2021...

The US central banks has $106 billion of loans outstanding to financial institutions through its two backstop lending facilities...

With banks' usage of The Fed's emergency Bank Term Funding Program rising once again to a new record at $102.7 billion (up $0.8 billion from last week), while discount window usage slipped $0.4 billion to $3.2 billion...

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

The US equity market continues to charge ahead, even as bank reserves at The Fed contracted modestly...

Finally, as a reminder, banks have 9 months left under the original 12-month BTFP Fed bailout program to find a way to stabilize their balance sheets.

Not only have they failed to do so, usage of the BTFP facility is at a new all time high, and yields are rising even more (great MTM losses).

...while US equity market continues to charge ahead, even as bank reserves at The Fed contracted again...
{ai:summary}Money market funds saw a second straight week of outflows, falling $18.2 billion with all outflows coming from institutional funds, while retail funds saw a ninth straight week of inflows. The Fed balance sheet shrank by $26.3 billion last week, with $19.4 billion of its assets sold. The US central banks has $106 billion of loans outstanding to financial institutions through its two backstop lending facilities, with usage of the emergency Bank Term Funding Program rising to a new record at $102.7 billion. Banks have 9 months left under the original 12-month BTFP Fed bailout program to stabilize their balance sheets but have failed to do so. #economy

Fed Emergency Bank Bailout Facility Usage Hits New Record High; Money Market Funds See Another Small Outflow

Loading...