Global Liquidity Watch: Weekly Update

Q3 is shaping up well. Global liquidity rose again last week

Q3 is shaping up well. Global liquidity rose again last week and reached a new all-time high. Encouragingly, Central Bank liquidity is turning higher. The PBoC is leading. Fed liquidity has stabilized and the typical seasonal downswing in the TGA is manifesting. Collateral values continue to improve too, although volatility has picked up a tad – this is likely a feature of thinner trading in the holiday period? All-in-all, the prospects for global liquidity in 2H are looking better than they were in 1H.