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

[behappyalways]

flows > macro > technical analysis
https://twitter.com/WifeyAlpha/status/1 ... 7110139066

[behappyalways]

This chart is really popular to explain why inflation is collapsing and will continue to collapse.
https://twitter.com/biancoresearch/stat ... 5429279999

[behappyalways]

This is mainly because the deluge of new T-bill issuance helped pull a lot of money out of reverse repos and back into the financial system, offsetting the Fed's ongoing QT.
https://twitter.com/LynAldenContact/sta ... 0092315937

[behappyalways]

Financial conditions are easier now vs when the Fed first started hiking
https://twitter.com/Mayhem4Markets/stat ... 6578251952

[winston]

U.S. Money Supply Is Doing Something No One Has Seen Since the Great Depression and It Implies a Big Move to Come in Stocks

by Sean Williams

1. M2 has fallen by 1.68% on a year-over-year basis and 3.86% since its summer 2022 peak.

2. Commercial bank credit has now retraced almost half of its decline, which began in mid-February 2023, just prior to the short-lived regional banking crisis.

Source: The Motley Fool

https://finance.yahoo.com/news/u-money- ... 00870.html

[behappyalways]

Reverse Repo craters after month-end window dressing
https://twitter.com/zerohedge/status/17 ... 8663184695


So close: $513.4BN
https://twitter.com/zerohedge/status/17 ... 2294684872

[behappyalways]

There it is: Reverse Repo tumbles below $500BN for the first time since 2021, down $82BN today to $493BN and on pace for a full March drain.
https://twitter.com/zerohedge/status/17 ... 6141078914

[winston]

Fed Likely to Keep Shrinking Balance Sheet While Liquidity Drain Persists

by Alexandra Harris

Usage of the Fed’s overnight reverse repurchase agreement facility or RRP — where eligible counterparties can park cash to earn a market rate — briefly dropped below $500 billion last week, continuing a months-long decline.

At the same time, bank reserve balances — another large liability on the central bank’s balance sheet — are $3.54 trillion, according to the latest data. That’s higher than the level seen when the Fed’s asset reduction started in June 2022, a process known as quantitative tightening or QT.

“The Fed is likely to view the spillover of surplus cash from the RRP facility into bank reserve accounts as inefficient and a reason to continue to drain liquidity from the financial system in general.”

Source: Bloomberg

https://finance.yahoo.com/news/fed-like ... 35405.html

[behappyalways]

There it is: Reverse repo plunges to $441BN from $503BN and down $128.5BN in two days; lowest since May 2021
https://twitter.com/zerohedge/status/17 ... 7640626590

[behappyalways]

Reverse Repo $413.9BN, down $70BN overnight from $483.6BN. New 3 year low and fast approaching the level JPM has said is a minimum threshold
https://twitter.com/zerohedge/status/17 ... 8634660199