by okie1
New data just came in. Use of fed’s liquidity facilities declined again:
This is where the money was coming from to create the demand for T bills, which is what was bringing rates down at the lower end of the yield curve. T bills are a cash equivalent that enable financial institutions to move money around the system.
This is the fed’s balance sheet, which continued to roll off this week:
So no end in sight for QT.
And deposits are declining more steeply than ever: