Reverse repo facility (RRP). A buffer of idle cash; its drawdown funded Treasury issuance in 2023-24 and its exhaustion is when QT starts to bite.
What to watch: Overnight RRP balances. It arrives daily, and the effect typically lasts months.
It sits in tier 2 — Directional: Moves the index for days or weeks. Scheduled data releases, policy decisions, global spillovers, and the prices of money and energy. This is the tier most professional attention is spent on.
Its neighbourhood
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What moves it
Dials it feeds
This factor is one input to a composite reading on the Analytics page.
Also in Liquidity and market plumbing
- Financial conditions
- Bank reserves and the Fed balance sheet
- Treasury General Account (TGA)
- Repo and money-market rates
- Money market fund assets
- Money supply (M2)
- Global central bank liquidity
- Emergency lending facilities and discount window
- Treasury market liquidity and basis trades
- Stablecoin demand for Treasury bills
- Treasury buyback programme
- Municipal bond market and tax exemption