For the first time in 6 weeks, US money market funds saw outflows (admittedly a tiny $1BN)...

The outflows were driven by institutional funds - the first in 6 weeks. Retail funds saw inflows for the 18th straight week..

Also of note is that usage of The Fed's emergency funds rose yet again (admittedly only $144MN) to a new record high...

Meanwhile, total bank deposits (on a seasonally-adjusted basis) fell for the second week in a row, plunging last week by $49BN...

Which leaves the divergence between bank deposits and money market funds wide but perhaps starting to narrow...

The big drop in deposits was driven by foreign bank outflows (-$31BN) but Large ($13BN) and Small banks ($4.6BN) also saw notable outflows on a SA basis. However, on a non-seasonally-adjusted basis Large (+$14BN) and Small banks (+$1.4BN) saw&nbsp; deposit inflows.

So, we have the now ubiquitous 'baffle em with bullshit' measures showing domestic US banks had $15BN of inflows (NSA) but $18BN of outflows (SA)...

Despite the outflows, Large ($13.7BN) and Small ($6.3BN) banks saw loan volumes increase last week...

Finally, US equity market cap remains divergent from bank reserves at The Fed...

So what exactly are the banks going to do in 6 months when The Fed's BTFP funding expires? That's a $107BN balance sheet hole that will need to be fixed...

...outflows on a SA basis (but inflow on a NSA basis)... and loan volumes increased.
{ai:summary}US money market funds saw outflows driven by institutional funds. Usage of The Fed's emergency funds rose to a new record high. Total bank deposits fell for the second week in a row, with foreign bank outflows being a major factor. Despite outflows, loan volumes increased for large and small banks. US equity market cap remains divergent from bank reserves at The Fed. The banks will face a $107BN balance sheet hole when The Fed's BTFP funding expires. #economy

US Bank Deposits Plunged Last Week As Fed Rescue Funding Usage Hits New Record High

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