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Reserves Jump, TGA Continues To Dive (2/2)

FED

On the liabilities side, another drawdown in the US Treasury General Account (to a fresh post-2021 low of $183.5B) and the increase in liquidity extended to the banking system mean reserves have rebounded from the previous week's drop, up $31.8B making the 4-week net change $373.8B.

  • The $3.4T level is a little off the recent peak but remains near the post-April highs. Reverse Repo takeup jumped $131B in the week, but remains basically flat versus a month ago (at a still elevated $2.26T).
  • The volume’s likely to spike toward the end of this week though, amid month/quarter-end activity.

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