For the 10th week in the last 12 (basically since taxes), money-market funds saw inflows, and last week was bigly with $51BN added pushing the total AUM to a new record high $6.15TN…
Source: BloombergThe Fed balance sheet rose by $2.5BN last week…
Source: BloombergBut as the Fed balance sheet rose, banks saw large deposit outflows last week, -$67BN on an SA basis…
Source: BloombergBUT on an NSA basis, deposits rose by $42BN….?
Source: BloombergExcluding foreign deposits, domestic banks saw $83BN in deposit outflows on a seasonally adjusted basis – the biggest since April’s Tax Day decline. The drop was dominated by large banks losing $72BN (small banks saw an $11BN decline). On an NSA basis, domestic banks saw $43BN inflows (large banks +$30BN, small banks +13BN)…
Source: BloombergDid the genii at The Fed just make the ‘adjustment’ clean up?
Source: BloombergOn the other side of the ledger, there was an overall shrinkage in loan volumes with large banks seeing volumes drop $4.7BN while small bank loans rose $4.3BN…
Source: BloombergBank reserves at The Fed rose last week but the chasm between US equity market cap and those reserves remains near record highs…
Source: BloombergAnd that liquidity gap is evident on a global scale…
Source: BloombergAre stocks pricing in a massive central bank balance sheet expansion?More By This Author:JPM Reports Record Quarterly Income After Surge In One-Time Items, Unexpectedly Boosts Loan Loss Reserves
Nasdaq Pukes To Worst Day Versus Small Caps In 22 Years, Gold Soars Near Record High After Soft CPI
Futures Dip Ahead Of “Very Good” CPI
