US Domestic Bank Deposits Tumble As Money-Market Fund Assets Near Record-High Again

Money-market inflows continued for the seventh straight week getting close to $6.1 trillion…

Source: Bloomberg

As total seasonally-adjusted US bank deposits fell $41.5 BN…

Source: Bloomberg

While on a non-seasonally-adjusted basis, total US ban deposits rose $89BN…?

Source: Bloomberg

Excluding foreign deposits, domestic deposits soared almost $100BN (NSA) last week – the most since March (large banks +$78BN, small banks +$22BN), while on an SA basis deposits tumbled $36.5BN – most in two months (large banks -$30BN, small banks -$7BN)…

Source: Bloomberg

On the other side of the ledger, loan volume barely budged overall with large bank loan volumes rising just below $1BN and small bank loan volumes shrinking just less than $1BN…

Source: Bloomberg

US equity market cap surged back to a new record high, dramatically decoupled from bank reserves at The Fed…

Source: Bloomberg

Which is more likely to happen – a collapse in the US equity market or sudden surge in bank deposits at The Fed?