from ZeroHedge:
After the massive deposit inflows the prior week, US banks saw total deposits plunge in the week-ending 10/09 (latest data released today), down a stunning $69BN (on a seasonally-adjusted basis), erasing the prior two weeks deposit inflows…
Additionally, for the first time in four weeks, money market funds saw (admittedly small) outflows this week (-$6.5BN), taking them just off record highs…
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Source: Bloomberg
That is only the second weekly outflow from MM funds in the last three months… and the outflow was all institutional (with retail funds continuing to see inflows)…
Source: Bloomberg
Excluding foreign deposits, the US domestic bank deposit outflows were considerably worse, down $85BN (NSA) and $88BN (SA)…
Source: Bloomberg
That is the biggest weekly SA domestic deposit outflow since the SVB crisis in March 2023…
Source: Bloomberg
As a reminder, its tax-filing extension deadline time, which we’re sure explains some of this. However, this is the largest mid-October deposit outflow since at least the GFC.
Outflows from Large Banks (-$81BN SA and -$85BN NSA) dominated small inflow for Small Banks (+$3.4BN SA and +$0.03BN NSA).
The Fed’s bank bailout facility continued to shrink last week (down $2BN), really getting back to immediate SVB crisis loan levels (having erased all the arbitrage-driven surge in the blue box)…
