Money-Market Fund Assets Hit Another New Record High As Domestic Bank Depos Surge To Pre-SVB Levels

Image by Allange from PixabayAmid all the volatility of the last few weeks in stocks, money markets have seen a constant inflow of funds (six straight weeks) with the last week adding $23.4BN to total MM fund AUM to a new record high of $6.324TN…Source: BloombergThat is $188BN of inflow in six weeks – the biggest since the turn of the year seasonal flows.At the same time, US banks saw almost $53BN of deposit inflows in the week-ending 09/04, pushing total (seasonally-adjusted) deposits to their highest since before the SVB collapse…Source: BloombergOn a non-seasonally-adjusted basis, US bank deposits soared $118BN last week – also back to its highest sine SVB…Source: BloombergExcluding foreign deposits, domestic bank deposits soared on both an SA (+$60BN) and NSA (+$137BN) basis…Source: Bloomberg…back above pre-SVB crisis levels…Source: BloombergAfter last week’s crash, domestic bank loan volumes rebounded modestly….Source: BloombergFinally, while US bank reserves at The fed have been trending lower, US equity market cap has stalled (at record highs)…Source: BloombergWhich is more likely? A collapse back to reality for stocks (hard landing) or a huge sudden surge in reserves at The Fed?More By This Author:Nvidia & NikiLeaks Spark Surge In Stocks, Gold, & Crypto This WeekGold Surges To New Record High After Hot PPI As ECB/WSJ Trigger Dollar DumpYIelds Hit Session High After Tailing 30Y Auction