It’s that time of year again and US bank deposits sure showed it…
While money-market funds’ total assets fell over $100BN, on a non-seasonally-adjusted (NSA) basis, total bank deposits crashed by a stunning $258BN as Tax-Day cometh. That is considerably more than the $152BN decline last year but less than the $336BN plunge in 2022…
Source: Bloomberg
This makes some sense though as the Treasury Cash Balance rose by around the same amount as taxpayers did their duty and paid their ‘fair share’…
Source: Bloomberg
However, on a seasonally-adjusted (SA) basis (i.e. adjusted by the PhDs for the fact that we get large deposit outflows at this time of year to pay taxes), total deposits dropped $133BN – the biggest weekly plunge (SA) since 9/11!
Source: Bloomberg
Excluding foreign deposits, domestic bank deposits plunged on both an SA (-$119BN: Large banks -$99BN, Small banks -$21BN) and NSA (-$241BN: Large banks -$188BN, Small banks -$53BN) basis…
Source: Bloomberg
For context, that is the largest weekly drop in SA deposits since 9/11 and the largest NSA deposit drop since April 2022 (Tax Day).
Interestingly, despite the deposit dump, loan volumes increased last week with large banks adding $5.8BN and small banks adding $2.5BN…
Source: Bloomberg
All of which pushed the un-bailed-out ‘Small banks’ back into ‘crisis mode’Â (red line below constraint absent the $126BN still in the BTFP pot at The Fed which is slowly being unwound)…
Source: Bloomberg
And so, with rate-cuts off the table – and tapering QT very much back on – we wonder just how much jockeying between Janet (Yellen) and Jerome (Powell) is going on ahead of next week’s QRA and FOMC news…
Tyler Durden
Fri, 04/26/2024 – 17:20
Click this link for the original source of this article.
Author: Tyler Durden
This content is courtesy of, and owned and copyrighted by, https://zerohedge.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.