-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessOvernight Reverse Repo Eclipses TGA
Fed liabilities saw two large moves in the week to June 16 (the date of the FOMC decision at which the Fed raised ON RRP and IOER rates): the Treasury General Account shrank by $76B, the 2nd largest weekly contraction since March, while reverse repo takeup soared $227B. This is the first time since 2017 that the size of total ON reverse repo was larger than the TGA.
Source: Federal Reserve, MNI
- This doesn't capture the post-FOMC rise in the non-foreign ON RRP alone to around $750B on Thursday and Friday, which likely reflects GSE flows into the facility in order to take advantage of the new +0.05% rate on offer (as Wrightson ICAP points out, previously they just left their cash in their Fed accounts, since both paid zero).
- ON RRP in general is likely to remain elevated in size amid the continued growth in reserves. Barclays writes that it's likely to remain in a range of $750-800B, depending on how many deposits banks shift to the facility.
Liabilities | Reserves | US Treasury General Account | Reverse Repo (Foreign) | Reverse Repo (Dealers) | Currency In Circulation | Other* |
Last Week's Net Change (USDbn) | -11.0 | -76.3 | 4.8 | 226.9 | -1.5 | -1.5 |
4-Week Net Change (USD bn) | 81.8 | -212.2 | -5.3 | 18.0 | 10.0 | 40.4 |
Total Holdings (USD bn) | 3905.7 | 653.9 | 222.8 | 520.9 | 2178.6 | 631.6 |
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.