Money-market fund total assets jumped over $70BN last week to a new record high above $6.11TN...
Source: Bloomberg
And, as the chart above shows, the broad trend for bank deposits has been positive (slow, but positive), slowly returning to pre-SVB levels.
And talking of SVB, in the three weeks since the Fed's bailout facility was terminated (remember these are 12-month term loans), the Bank Term Loan Facility has shrunk by $37BN, erasing most of the arb-driven rise in the fund - but still holding at $130BN that banks are using to fill holes in their balance sheets....
Source: Bloomberg
On a seasonally-adjusted basis, total bank deposits exploded higher by $77BN (the fifth straight weekly increase in deposits), back to pre-SVB levels...
Source: Bloomberg
Non-seasonally-adjusted deposits were even more impressive, jumping $114BN to the highest since Jan 2023...
Source: Bloomberg
Excluding foreign deposits, domestic bank deposits rose $81BN SA (Large banks +$69BN, Small banks +$12BN); while NSA deposits rose $130BN (Large banks +$103BN, Small banks +27BN)...
Source: Bloomberg
On the other side of the ledger, loan volumes rose overall but Large banks saw volumes shrink by $1.5BN (odd given the massive deposit inflow), while Small bank loan volumes rose $9.6BN...
Source: Bloomberg
Meanwhile, bank reserves at The Fed are falling significantly, massively divergent from US equity market cap once again...
Source: Bloomberg
Which happens first?
Banks start piling reserves back in or stocks falter?