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Money Fund AUM Slips, RRP Drops Below $500 Billion
US money market funds shed assets over the latest weekly reporting period.
Before anyone's eyebrows turn up, allow me to downplay this "news": The $4.289 billion drip barely shows up, even on a short-term (i.e., zoomed-in) chart.
The minuscule redemptions came on the heels of $58.366 billion worth of inflows over the preceding two weeks, during which total AUM notched consecutive record highs above $6 trillion. So far in 2024, money funds have taken in $127.696 billion.
It was notable, perh
I think perhaps there is SOME reason to talk about BTFP balances, if only to ask where the $$ will come from to pay off the loan balances. RRP? Reserves? Is the Fed taking account the RRP/reserve drain in their estimates of those numbers come April/May? I’m not sure they are.
Banks will use the discount window after BTFP ends.