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.
Bank reserves are likely to have eclipsed the $4trn mark for the first time late last week, with the Weds May 12 snapshot showing a rise of $55.1bln for a total of $3.96trn. The rise and rise of overnight reverse repo takeup (total holdings $429bln, up $40bln) took some reserves out of the system, but this was more than compensated for by other factors, including a continued drawdown in the Treasury General Account (-54.9bln).
Source: Federal Reserve, MNI
Wrightson ICAP suggests that the increase may prove short-lived, with GSE deposits (which draing reserves) likely to have risen at the end of last week in advance of large mid-month MBS payments. They also expect ON RRP volumes to climb further in the latter half of this week after a dropoff last Friday/Monday.
| Liabilities | Reserves | US Treasury General Account | Reverse Repo | Currency In Circulation | Other |
| Last Week's Net Change (USDbn) | 55.1 | -54.9 | 40.5 | 3.3 | -23.8 |
| 4-Week Net Change (USD bn) | 19.4 | -26.3 | 147.0 | 15.1 | -117.6 |
| Total Holdings (USD bn) | 3955.9 | 898.8 | 428.8 | 2168.2 | 379.0 |
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.