Bank Deposits & Money-Market Funds See Sizable Outflows As Stocks Surge

For the first time in seven weeks, money market funds saw net outflows last week (-$20BN) - the largest weekly outflow since June...

Source: Bloomberg

The outflow was dominated by a major institutional drawdown (-$25BN) as Retail funds saw inflows yet again...

Source: Bloomberg

US Bank Deposits (seasonally-adjusted) also saw outflows in the week ending 09/11 (-$9.3BN), the first weekly outflow in five weeks...

Source: Bloomberg

On a non-seasonally-adjusted basis, US Bank Deposits also fell (-$15BN), backing off from April highs...

Source: Bloomberg

Excluding foreign deposits, domestic banks saw outflows (both SA -$34BN and NSA -$41BN) in the week ending 9/11 (before The Fed rate-cut), with Large Banks dominating the outflows (SA -$24BN and NSA -$32BN)...

Source: Bloomberg

On the other side of the ledger, loan volumes increased despite the deposit shrinkage with Small bank loans rising $4.1BN and Large bank loans rising $1.2BN...

Source: Bloomberg

Finally, US equity market capitalization surged back up towards all-time highs this week (after The Fed unleashed hell with a 50bps cut)...

Source: Bloomberg

...meanwhile, bank reserves at The Fed suggest stocks could be significantly lower.