Fed Overnight Reverse Repo Usage Falls to $350M from $11.54B

The near-total collapse in RRP take-up to a single counterparty signals that overnight liquidity is finding better uses than the Fed's facility, a shift that matters for anyone tracking the floor under short-term rates. The facility's shrinking footprint means it is doing less work as a buffer absorbing excess cash, which in turn makes money-market rates more sensitive to swings in Treasury supply and reserve levels. Whether usage stays this thin — and how repo markets behave without the RRP as a backstop — is the open question.