MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Japan Nov CGPI Rises 3.7% Y/Y, Import Prices Drop

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FED: System Reserves Tick Higher, Remain "Way Above" Ample

FED
USGlobalEM BulletFederal ReserveCentral Bank NewsFixed Income BulletsBulletMarketsEmerging Market NewsForeign Exchange BulletsRegionNorth America

The Federal Reserve's weekly balance sheet release showed a rise in reserves of just under $100B, with the total of just under $3.2T a 3-week high in what NY Fed President Williams today called "way above" the level of "ample".

  • The rise in reserves came on the back of drops in the Treasury General Account ($36B), and reverse repo takeup ($60B total, including $40B in the widely quoted ON RRP for Dealers which totaled $343B Wednesday - that dropped another $20B Thursday - vs quarter-end highs of $465B two weeks ago). 
  • Fed assets in contrast were almost completely unchanged on the week, with no runoff in the SOMA portfolio and a $2.5B dip in uptake of emergency/liquidity facilities (this week it was entirely made up of a drop in the Bank Term Funding Program size, to $69.9B, a fresh post-March 2023 low). Discount Window borrowing remained negligible at $1.7B (up $0.1B).
  • The bigger picture is that assets have fallen $68B over the past 4 weeks, mainly MBS and Treasury QT. That's set to continue for at least a few months yet, with the September FOMC meeting minutes indicating that the current view is balance sheet reduction "could continue for some time even as the Committee reduced its target range for the federal funds rate."
212 words

To read the full story

Close

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.

The Federal Reserve's weekly balance sheet release showed a rise in reserves of just under $100B, with the total of just under $3.2T a 3-week high in what NY Fed President Williams today called "way above" the level of "ample".

  • The rise in reserves came on the back of drops in the Treasury General Account ($36B), and reverse repo takeup ($60B total, including $40B in the widely quoted ON RRP for Dealers which totaled $343B Wednesday - that dropped another $20B Thursday - vs quarter-end highs of $465B two weeks ago). 
  • Fed assets in contrast were almost completely unchanged on the week, with no runoff in the SOMA portfolio and a $2.5B dip in uptake of emergency/liquidity facilities (this week it was entirely made up of a drop in the Bank Term Funding Program size, to $69.9B, a fresh post-March 2023 low). Discount Window borrowing remained negligible at $1.7B (up $0.1B).
  • The bigger picture is that assets have fallen $68B over the past 4 weeks, mainly MBS and Treasury QT. That's set to continue for at least a few months yet, with the September FOMC meeting minutes indicating that the current view is balance sheet reduction "could continue for some time even as the Committee reduced its target range for the federal funds rate."