TREE NEWS reports: On Thursday, September 3, usage of the Federal Reserve’s overnight reverse repurchase agreement (RRP) facility totaled $702 million, with four counterparties, down from $525 million the previous trading day. The decline reflects continued low demand for the Fed’s liquidity absorption tool.
Fed RRP usage falls to $702M on Thursday
AI take
The near-empty RRP facility underscores how far excess liquidity has drained from the financial system, a backdrop that keeps funding conditions tight and can amplify volatility in short-term rates. For crypto and RWA markets, this signals a regime where cash is scarcer, potentially affecting yield-seeking behavior and collateral dynamics. The open question is whether this trend persists into quarter-end, when balance sheet constraints typically pressure funding markets.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.
Related News
14m ago
Nikkei 225 slips 0.3%, Topix down 0.8% at morning close
15m ago
Battery-grade lithium carbonate midpoint rises to 93,700 yuan/tonne
44m ago
Indonesia’s benchmark stock index extends intraday decline to 1%
48m ago
US farm income to fall 2.6% in 2026 as farmers sour on Republicans before midterms
54m ago
Hang Seng Index Extends Gain to 1%, China Life Up Over 6%
1h ago
China’s Renewable Energy Law revision draft submitted for first reading