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Money market funds saw yet another week of inflows (+$40BN), taking the total AUM to a new record high of $6.508 TN...
Source: Bloomberg
The inflow into MM comes as bank deposits (on a seasonally adjusted basis) dropped a modest $13BN to the week-ending 10/23...
Source: Bloomberg
But, on a non-seasonally-adjusted basis, total deposits plunged $133BN (the biggest weekly decline since April)...
Source: Bloomberg
Excluding foreign deposits, it's even uglier. On an NSA basis, US deposits plunged $131BN - the biggest weekly drop since April (Large banks -$97BN, Small banks -$34BN). But, by the magic of The Fed's PhDs, the 'seasonal adjusted' domestic deposits fell just $3BN (Large banks +$8BN, Small banks -$11BN)...
Source: Bloomberg
This is the biggest Large bank deposit drop since May...
Source: Bloomberg
This should only be worrying if we see liquidity problems in the banking system starting to occur.
Wait, what?
Source: Bloomberg
...and reverse repo usage is collapsing (liquidity needs?)
Source: Bloomberg
Is that why USA sovereign risk is blowing out?
Source: Bloomberg
Are they holding back a banking crisis for Trump's victory?
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