FED: "Abundant" Reserves Rise To 7-Week High As Tsy Cash Dwindles (2/2)

Reflecting the limited change in Fed assets, liabilities were little changed in the most recent week on net, though the composition has evolved over the last 6 weeks.

• Over the last month, reserves have risen $294B to $3.294B - the highest since the week of April 9 (including $10B in the past week). This has come alongside a sharp in reverse repo facility takeup and more notably a $240B fall in the Treasury General Account.
• Reserves are up up nearly $300B from end-April, with TGA holdings down from $678B at that time - with these dynamics reflecting the buildup and then drawdown of Treasury cash during and after the April tax season.
• This got a mention in May's FOMC minutes out Wednesday:  "A range of core indicators continued to suggest that reserves remained abundant....The  [SOMA] manager observed that reserves stood above $3.2 trillion and were expected to increase as the Treasury General Account (TGA) declined until resolution of the debt limit situation. Take-up at the overnight reverse repurchase agreement (ON RRP) facility had increased but remained low in absolute terms. "