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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FED
The decline in reserves (-$254.1B) and the jump in reverse repo facility usage (+$553.2B in domestic takeup) were the standout changes in Fed liabilities in the week to Wednesday Jun 30. That drop in reserves was the 2nd biggest in the last 20 years (end-Wednesday levels).
Source: Fed, MNI
- Meanwhile, the rise of reverse repo usage is responsible for much of the absorption of those reserves. The Wednesday level just shy of $1T was flattered by quarter-end, which sees foreign banks parking money in the facility for "window-dressing" regulatory purposes.
- Since then, usage has fallen back: Friday's figure was "just" $731.5B. Still, usage is expected to continue rising in the coming weeks, as the TGA continues to fall, and Fed asset purchases continue.
| Liabilities | Reserves | US Treasury General Account | Reverse Repo (Foreign) | Reverse Repo (Dealers) | Currency In Circulation | Other* |
| Last Week's Net Change (USDbn) | -254.1 | 11.3 | 26.7 | 553.2 | 2.2 | 2.2 |
| 4-Week Net Change (USD bn) | -336.6 | -37.3 | 34.9 | 178.3 | 3.7 | -75.3 |
| Total Holdings (USD bn) | 3511.6 | 746.0 | 269.0 | 991.9 | 2180.6 | 427.7 |
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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