It is an important week insofar that tax filing (April 15th) was slated to punish US money market liquidity, push up the TGA (Treasury General Account) and slightly deplete the Reverse Repo facility (RRP). It did all of the above with the TGA coming in slightly shy of US$1 trillion. Seasonal factors will push it lower over the rest of 2024, but notwithstanding Fed Liquidity fell US$284 billion on the week, pushing banks’ reserves down to US$3.33 trillion from US$3.62 trillion, an 8% fall.
© 2024 Michael Howell
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