The Fed’s reverse repo facility (RRP) saw inflows drop sharply on Monday April 15, taking in $327.1 billion, down $80.2 billion from Friday, marking the lowest level of inflows since the facility took in $293 billion on May 19, 2021.
Monday is the deadline for most US tax returns and a key settlement date for Treasury debt auctions, which can influence activity at the reverse repo facility. Scott Skyrm, executive vice president at money market trading firm Curvature Securities, told Reuters that money is coming out of reverse repos to deal with financing the Treasury’s debt issuance.