Image Source: PexelsAfter last week’s small $6.5BN outflow, money-market funds saw a massive $40.4BN inflow this week, taking total AUM to a fresh record high above $6.5 TN…
Source: BloombergAnd following last week’s huge deposit outflows (which we assumed were somewhat related to deferred tax payments coming due), US banks saw deposits (on a seasonally-adjusted basis) surged back higher (by $84BN) in the week ending 10/16 (the latest data released today)…
Source: BloombergOn a non-seasonally-adjusted basis, total deposits also rebounded from last week’s plunge (+$66BN)…
Source: BloombergExcluding foreign deposits, domestic deposits rebounded from last week’s puke. Seasonally-0adjusted deposits rose $73.7BN while non-seasonally-adjusted deposits rose $60.5BN…
Source: BloombergLarge banks dominated the deposit inflows (+46BN NSA, $67.7BN SA) while Small banks added $14.5BN NSA and $6BN SA.Given all that, it is perhaps rather surprising that loan volumes exploded higher in the week ending `0/16 with Larg bank loans rising $20.7BN and Small bank loans increasing by $5.3BN. That is the biggest since April 2023…
Source: BloombergFinally, the bank bailout facility continued to be drained (down $7.1BN this week) as the initial loans roll out of the facility…
Source: BloombergAnd from a liquidity need perspective, The Fed’s reverse repo facility continued to be drained this week (to cycle lows since the quarter-end surge)…
Source: BloombergIn the crude world, we call this ‘tank bottoms’ – and we’re fearful that the plumbing is going to start creaking sooner rather than later.More By This Author:Stocks Break Six-Week Win-Streak, Gold Hits Record High As ‘Trump Trade’ Takes OffUS Durable Goods Orders Revised Lower… AgainTesla Soars After Unexpected Jump In Profit Margin Suggests Price War Is Over
