Apr 11, 08:37 PM

Money-Market Assets Swing: Peak at $6T Then Drop $30.98B Amid Tax Deadline

Money-market fund assets have experienced significant fluctuations over the past week, with a notable rise to a record $6 TRILLION before falling to $6.08 trillion, as reported by various financial news outlets. The initial increase was attributed to expectations that short-term rates would remain elevated, a stance supported by recent Fedspeak, suggesting Federal Reserve officials are not in a hurry to cut rates. However, the assets saw a decrease of $28.52 billion for the week ending April 9th, according to IMONEYNET, and a total fall of $30.98 billion to $6.08 trillion for the week ending April 10th, as per ICI. This decline was driven by a withdrawal of cash from both retail and institutional government funds, coinciding with the approach of the US income tax payment deadline. Additionally, there was an $81.8 billion inflow into money markets over the past week, marking the largest in 13 weeks, according to BofA. The Federal Reserve's bank term funding loans and discount-window loans saw adjustments, with term funding loans decreasing to $126.3 billion from $130.5 billion and discount-window loans reducing to $5.05 billion from $5.45 billion.

#Fedspeak #Federal Reserve #IMONEYNET #ICI #US #BofA

Written with ChatGPT (GPT-4).

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