Key Points
It was the largest weekly drop in more than 11 years, and the main driver was the balance of outstanding repurchase agreements - or repos - which fell to zero from $61.2 billion a week earlier. It was the first time in 10 months that banks have not tapped the Fed for this key source of short-term funding. 1
“They want to be seen as supplying more than enough to the system and they’re going to err on the side of doing that,” said Kathy Bostjancic, chief U.S. financial economist for Oxford Economics. 1
