Money market funds saw yet another week of inflows (+$40BN), taking the total AUM to a new record high of $6.508 TN...

The inflow into MM comes as bank deposits (on a seasonally adjusted basis) dropped a modest $13BN to the week-ending 10/23...

But, on a non-seasonally-adjusted basis, total deposits plunged $133BN (the biggest weekly decline since April)...

Excluding foreign deposits, it's even uglier. On an NSA basis, US deposits plunged $131BN - the biggest weekly drop since April (Large banks -$97BN, Small banks -$34BN). But, by the magic of The Fed's PhDs, the 'seasonal adjusted' domestic deposits fell just $3BN (Large banks +$8BN, Small banks -$11BN)...

This is the biggest Large bank deposit drop since May...

This should only be worrying if we see liquidity problems in the banking system starting to occur.

<a href="https://www.zerohedge.com/markets/what-going-swap-spreads-goldman-warns-all-hell-about-break-loose-repo">Finally, something remains afoot in the financial plumbing world. SOFR-Swap Spreads are blowing out (signaling some credit/liquidity stress)...</a>

...and reverse repo usage is collapsing (liquidity needs?)

Is that why USA sovereign risk is blowing out?

Are they holding back a banking crisis for Trump's victory?

...The Fed managed to turn a massive $97BN deposits outflow from large banks into an $8BN inflow...
{ai:summary}Money market funds experienced inflows of $40 billion, reaching a record total of $6.508 trillion. Meanwhile, bank deposits fell by $13 billion seasonally, and a significant $133 billion non-seasonally, marking the largest weekly decline since April.Concerns are rising about potential liquidity issues in the banking system, indicated by widening SOFR-Swap spreads and a drop in reverse repo usage. This situation raises questions about the stability of U.S. sovereign risk. #economy

US Big Banks Suffer Biggest Deposit Outflow Since April... Until The Fed 'Adjusted' Them

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