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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.
MNI Fed Balance Sheet Tracker - May 19, 2023
MNI Fed Balance Sheet Tracker - May 19, 2023
EXECUTIVE SUMMARY:
- Usage of Fed liquidity facilities saw an 8th consecutive decline in the week to May 17, with a modest rise in takeup of the new Bank Term Funding Program offset by falls in discount window borrowing and “other” credit extensions.
- The size of the Bank Term Funding Program hit a new peak, but this is not a particularly worrying development, with the steady rise more indicative of banks taking advantage of generous financing terms under the program rather than requiring emergency funding.
- An informal MNI client poll run earlier this week saw no respondents expect an outright US debt default, with an 80/20 split between those expecting a short-term stop gap versus a long-term debt ceiling increase.
- If there is a resolution by early June, and the Treasury can resume borrowing, it’s expected to quickly replenish its cash pile by issuing sizeable amounts of T-Bills. Reserves could drain out of the system quickly as the Treasury rebuilds its cash pile, putting renewed pressure on system liquidity.
For full PDF analysis:
Source: MNI, US Treasury
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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