Recent developments
Deutsche Bank·2024-08-13 09:57
Recent developments ❏ Reserve balances have recently fallen to their lowest levels since 2023, and ON RRP balances also resumed declining after remaining steady over the past several months. Reserve balances now constitute around 11% of GDP, the lowest since the start of QT. Reserve metrics are moving closer to levels consistent with "ample" previously. ❏ Repo rates have increased since May, with SOFR settling in a new range of 5.33% - 5.35%. Daily volumes are at record highs. Demand for repo leverage is hi ...