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: Bloomberg
The Fed balance sheet rose by $2.5BN last week...
Source: Bloomberg
But as The Fed balance sheet rise, banks saw large deposit outflows last week, -$67BN on an SA basis...
Source: Bloomberg
BUT on an NSA basis, deposits rose by $42BN....?
Source: Bloomberg
Excluding 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: Bloomberg
Did the genii at The Fed just make the 'adjustment' clean up?
Source: Bloomberg
On 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: Bloomberg
Bank reserves at The Fed rose last week but the chasm between US equity market cap and those reserves remains near record highs...
Source: Bloomberg
And that liquidity gap is evident on a global scale...
Source: Bloomberg
Are stocks pricing in a massive central bank balance sheet expansion?
