For the fourth week in a row, money market funds saw inflows (+$21BN) which lifted the total AUM to a new record high of $6.26TN…
Source: Bloomberg
All of which took place as stocks puked hard and recovered.Bank deposits, on the other hand, were flat the week-ending 8/21 (+$0.9BN on a seasonally-adjusted basis)…
Source: BloombergBut, on a non-seasonally-adjusted basis, US banks saw a large $85BN deposit drawdown… the biggest weekly decline since May…
Source: BloombergWTF is a ‘seasonally-adjusted deposit’ anyway?Excluding foreign deposit flows, this meant US domestic deposits tumbled $94BN last week (NSA)… or – after Fed fuckery – just $11BN (SA)…
Source: BloombergThe seasonally-adjusted flows saw small banks add $9BN in deposits while large banks saw $20BN in deposit outflows (as everyone and their pet rabbit piled back into NVDA?) On the other hand, non-seasonally-adjusted, large and small banks saw major deposits runs (-$86BN and -$8BN respectively).Interestingly, on the other side of the ledger, small bank loan volume shrank (admittedly by just $372MN) as large bank loan volume surged (+$13.5BN) in the week-ending 8/21…
Source: BloombergFinally, as stocks market caps soared back towards record highs this week, bank reserves at The Fed dipped once again…
Source: BloombergThat’s quite a divergence!!More By This Author:Fed’s Favorite Inflation Indicator Unexpectedly Misses As Savings Rate Plunges To Multiyear LowSubpar 7Y Auction Tails As Direct Bidders Tumble To Lowest Since March 2020Yields Hit Session High After 5Y Auction Tails
