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

[behappyalways]

The Fed’s “safe cash” parking lot is almost empty.

Reverse Repo usage has plunged to $4.6 billion, the lowest since April 2021.

That’s down 99.8% from over $2.5 trillion at the peak, marking a major shift in U.S. liquidity.
https://x.com/_Investinq/status/1975635416435880221

[winston]

China is pumping cash to fill a US$456 billion liquidity shortfall

Boosting the supply of money available to banks to ensure they can meet the surge in demand for cash during the Chinese New Year holidays.

The central bank injected a total of 600 billion yuan (S$110 billion) via a 14-day repurchase agreements late last week, ending a two-month hiatus for such operations.

The injections would address a roughly 3.2 trillion yuan liquidity gap identified by Bloomberg calculations.

Withdrawals related to holiday spending, heavy government bond issuance and surging corporate demand for the yuan are all expected to drain funds from the banking system.

Expect a liquidity drain of 900 billion yuan from holiday travel and the tradition of gifting cash in red envelopes during the Chinese New Year festivities.

Economists expect China to slash banks’ reserve-requirement ratio by 50 basis points this year and cut interest rates.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... -shortfall