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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
Takeup of the Fed's overnight reverse repo facility by domestic participants has eclipsed $800bn, and including foreign participants' participation, it's eclipsed $1trn for the first time.
- In the context of the entire balance sheet, though, that's not unprecedented: at 13% of total Fed assets/liabilities, it's just shy of the 2015 high of above 14%. Note the facility was opened in September 2013, but only used for operational purposes starting September 2014.
- That said, expectations are for a continued rise in ON RRP domestic takeup, potentially above $900bln at quarter-end next Wednesday Jun 30. That would bring the size up to 14+% of the total balance sheet.
Source: Fed, MNI
- The Fed seems very comfortable with this size of takeup, with speakers since the June FOMC meeting shrugging off the adjustment in ON RRP rates as technical.
- The facility continues to keep a lid on reserve growth: bank reserves slipped to the lowest since March this week, despite a $300bln reduction in the Treasury General Account.
| Liabilities | Reserves | US Treasury General Account | Reverse Repo (Foreign) | Reverse Repo (Dealers) | Currency In Circulation | Other* |
| Last Week's Net Change (USDbn) | -140.0 | 80.8 | 19.5 | 363.4 | -0.2 | -0.2 |
| 4-Week Net Change (USD bn) | -85.9 | -77.8 | 22.1 | 292.7 | 8.3 | -31.6 |
| Total Holdings (USD bn) | 3765.7 | 734.7 | 242.3 | 813.7 | 2178.5 | 416.4 |
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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