The Federal Reserve's financial activities for the week ending June 26 saw significant movements. The Fed's bids for 4-week bills totaled $215.8 million. Money market fund assets increased by $4.97 billion to $6.10 trillion for the 8-day period ending June 26, according to the Investment Company Institute (ICI). The Fed's bank term funding loans amounted to $106.6 billion, slightly down from $107.3 billion the previous week. Discount-window loans rose to $7.03 billion from $6.68 billion. Additionally, US bank deposits increased to $17.612 trillion from $17.574 trillion in the prior week.
RRPs spike all the way back up to $665 billion as the end-of-quarter stockpile of liquidity looks around for an overnight home; this will likely plunge back below $400 billion before end of next week: https://t.co/NNVCbjUC0C
US BANK DEPOSITS ROSE TO $17.612 TLN FROM $17.574 TLN IN THE PRIOR WEEK.
3. There is funding pressure leading up to quarter-end, but there is a significant increase in cash in the Repo market - look at the decline in overnight rates each day and the increase in cash at the RRP facility
The current spike in RRPs back over $500 billion is likely due to the end of month and end of quarter liquidity build up; that means it'll drain back down next week and pour into bank reserves: https://t.co/tkHFyHfV16
🚨FED DISCOUNT WINDOW : **Banking Sector Stress Increases** **Fed Discount-Window Loans:** $7.03B (up from $6.68B) 📈 - Fed's Stance: Higher rates for longer (Fed Gov. Bowman) - JPMorgan:Stress test losses may exceed Fed disclosures https://t.co/Fe1nqqN82b
Bank reserves tumbled $130 million last week, though that could just be the result of end-of-month and end-of-quarter effects; we'll have a better sense of the underlying trend in the next 2 weeks: https://t.co/Xp9fgOO9YV
THE FEDERAL RESERVE'S BANK TERM FUNDING LOANS TOTALED $106.6 BILLION IN THE WEEK ENDING JUNE 26, FOLLOWING $107.3 BILLION IN THE PREVIOUS WEEK
FED DISCOUNT-WINDOW LOANS $7.03B IN WEEK ENDED JUNE 26 AFTER $6.68B.
THE FEDERAL RESERVE'S DISCOUNT-WINDOW LOANS AMOUNTED TO $7.03 BILLION IN THE WEEK ENDING JUNE 26, UP FROM $6.68 BILLION IN THE PREVIOUS WEEK
FED BANK TERM FUNDING LOANS $106.6 BLN IN THE WEEK ENDED JUNE 26TH AFTER $107.3 BLN.
TOTAL MONEY MARKET FUND ASSETS ROSE BY $4.97 BLN TO $6.10 TLN FOR THE 8-DAY PERIOD JUNE 26TH - ICI
TOTAL MONEY MARKET FUND ASSETS ROSE BY $4.97 BLN TO $6.10 TLN FOR THE 8-DAY PERIOD JUNE 26TH - ICI.
FED BIDS FOR 4-WEEK BILLS TOTAL $215.8 MLN.