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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 past week (ending May 5) in Fed liabilities developments included a continued rotation away from the Treasury's account at the Fed (-$14.0bn), and into bank reserves (+$11.8bn), as expected to continue throughout most of the summer.
- Most notable perhaps of the past month has been the sharp rise in overnight reverse repo takeup - the 4-week net change is +$116.2bn, and that's just a one-day snapshot, with takeup actually rising to over $180bn on April 30 - not quite but beginning to approach the pandemic highs.
$bnSource: Federal Reserve, MNI
- This suggests that the surplus of cash that is continuing to put downward pressure on front-end rates is finding something of a pressure valve in reverse repo, and that, as BMO FICC puts it, "is anticipated to be sufficient to preserve the integrity of the effective lower bound".
| Liabilities | Reserves | US Treasury General Account | Reverse Repo | Currency In Circulation | Other |
| Last Week's Net Change (USDbn) | 11.78 | -14.00 | 5.41 | 3.83 | 22.50 |
| 4-Week Net Change (USD bn) | -43.25 | -56.41 | 116.23 | 18.03 | 67.01 |
| Total Holdings (USD bn) | 3900.80 | 953.69 | 388.30 | 2164.97 | 402.72 |
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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