Liquidity 02 incl QE, Twist, LTRO, APP etc (Jun 14 - Dec 25)

[behappyalways]

Another day, another boost... #China #PBoC adds more #liquidity to money markets...that's RMB4 trillion ($1.3 tr) since June = Xi's QE #Commodities ?
https://twitter.com/crossbordercap/stat ... 5199131921

[behappyalways]

There's always a boom somewhere!! Thanks China

PBOC Liquidity vs Asia Pacific Shipping Activity

https://twitter.com/crossbordercap/stat ... 0085335490

[behappyalways]

Financial conditions have loosened last week, per Goldman
https://twitter.com/Mayhem4Markets/stat ... 9686113573

[behappyalways]

Reverse repo $993BN, down from $1.024TN, adding $31BN in liquidity; below $1TN for the first time since Aug 2021
https://twitter.com/zerohedge/status/17 ... 0976882173


Central bank liquidity and the S&P 500 are experiencing a rather large divergence
https://twitter.com/Mayhem4Markets/stat ... 9856425306

[behappyalways]

If QT Is Doing This, No Wonder Stocks Are Rallying
https://www.zerohedge.com/markets/if-qt ... e-rallying

[behappyalways]

Reverse Repo Drain Isn’t the Problem
https://www.fxhedgers.com/p/reverse-rep ... he-problem

[winston]

Shrinking Money Supply

by Bryan Rich

Money supply has been contracting on a year-over-year basis since last December.

However, the massive monetary and fiscal response to the pandemic (plus the subsequent agenda spending binge) ramped the money supply by 40% in just two years.

That was almost a decade's worth of money supply growth (on an absolute basis), dumped onto the economy in a span of two years.

The level of money supply remains significantly elevated.

If we extrapolate out the pre-pandemic trend growth in money supply, the economy still has more than $3 trillion in excess money sloshing around.

That's why we continue to have hot nominal growth (a nearly 9% annual rate of GDP growth last quarter).

Source: Forbes

[behappyalways]

The Money Supply Continues Its Biggest Collapse Since The Great Depression
https://www.zerohedge.com/personal-fina ... depression

[behappyalways]

#US #Fed #liquidity hit $3.68 trillion at mid-week acc. to latest H4.1. Highest since April'22 and $ 1/2 trillion up from Feb low. Banks' reserves refilled... does it matter? Ask Mr Market!
https://twitter.com/crossbordercap/stat ... 0801018302

[winston]

The Fed’s shrinking balance sheet is worrying a key corner of US financial markets

by Alexandra Harris

A debate is simmering over whether the Fed is misjudging how far it can shrink its balance sheet — a process known as quantitative tightening — without causing dislocations in places like the repurchase-agreement markets, part of the essential plumbing of the financial system.

Four years ago, increased government borrowing exacerbated a shortage of bank reserves that was created when the Fed cut back on Treasury purchases.

Powell signaled on Wednesday that he was comfortable with the current level of reserves and said the central bank would slow or halt balance-sheet reductions as needed to make sure they remain “somewhat above” a level the Fed considered “ample.”

There’s still just under $800 billion stashed in the Fed’s overnight reverse repo agreement facility, or RRP — a source of excess liquidity where counterparties like money-market funds can park cash and earn 5.3% — and banks are still sitting on roughly $3.5 trillion of reserves,

During the Covid-19 pandemic, the Fed bought roughly $4.6 trillion of Treasuries and mortgage-backed securities to keep longer-term interest rates low and stimulate the economy.

Source: Bloomberg

https://finance.yahoo.com/news/fed-shri ... 00117.html