From IFR News:
Cash is leaving the parking lot and being put to work. Total RRP( Reverse Repos agreement) demand is now $53.5 bn which is $250 bn lower than the quarter-end level of $285.0 bn. Whether it is being put into equities or some fixed income product, the RRP demand is falling dramatically. Today’s drop is the 6th in a row.
*Today’s level was $53.483 bn with 17 bidders is $35 bn lower than yesterday and had 9 few participants. The allocation per bidder at 0.00% was $3.17 bn
Reverse repos are a way for banks to lend money or park money with the Fed and earn an interest rate for doing so.The above comments indicate to me that Banks were quite happy lending money to the fed as it was safe and no better alternative out there,But now better things to do with money then lend to fed,A good thing for the of US economy .
