US MMF repos with dealers hit record amid RRP pullback
Non-Fed trades up 13% in November as facility’s usage declines rapidly
US money market funds’ (MMFs) repurchase agreements with private counterparties hit a record $1.74 trillion at end-November, as dealers leached away at the US Federal Reserve’s dominance of the market through its reverse repo programme (RRP).
The value of US MMFs’ reverse repos with US-owned financial institutions hit $479.7 billion, up 13.1% for November and 200% year on year, giving them an 18.5% share of all repo investments reported by the mutual funds, data from the Office of Financial
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