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Limited Decline In RRP Usage As Banking Turmoil Continues

US
  • Today’s -$15B in RRP uptake to $2,218B (historical comparison here) is relatively small considering GSEs tend to exit the funding market ahead of paying MBS holders typically around the 25th.
  • It follows -$46B Thursday after surging a combined $181B Tue-Wed, whilst the number of counterparties increased by 1 to 100 from the mid-week 104.
  • The limited drawdown seems likely a sign of continued elevated participation from money market funds after strong inflows amidst US regional banking woes, with fears exacerbated today on continued spillover in Europeans banks.

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