RRP drops to “floor level”: The U.S. liquidity is sending its final signal



A critically important, yet mostly overlooked data point has just come out: the Federal Reserve’s overnight reverse repurchase agreement (RRP) usage scale—only $137 million. What does this number mean? It can almost be seen as “effectively clearing out.”

What is the essence of RRP? In simple terms: a “temporary safe haven” for funds. When market liquidity is in excess, money stays in the RRP to earn risk-free returns.

What’s happening now? RRP has fallen straight from the past “trillion-level” to the “hundreds of millions” level. This indicates: the money no longer wants to just lie around.
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