J.P. Morgan Securities' latest "April taxable MMF holdings update" comments, "Dealer repo with MMFs rose $89bn month over month to $1,107bn, as Yankee banks saw their activity rebound post quarter end. The biggest increases came from French (+$50bn), US (+$24bn), Japanese (+$21bn), and Swiss (+$14bn), partially offset by a $23bn decline from Canadian banks due to their quarter-end technicals.... FICC sponsored repo rose $5bn to $112bn, and FICC remained the second largest individual counterparty." The "Short-Term Fixed Income Update" also says, "Away from repo, government funds substantially decreased their allocations to Treasuries: T-bill holdings fell $70bn, and fixed- and floating-rate coupon allocations dropped $70bn and $29bn, respectively. Government funds added $16bn of Agencies (mostly discos).... Government MMFs remain large buyers of SOFR floaters, increasing their holdings by $9bn to $60bn.... Of the more than $100bn of SOFR floaters that have been issued to date, about 81% has come from GSEs, so it's not surprising that government funds have played a large role, taking down over half of all SOFR issuances so far." Finally, JPM adds, "Prime funds saw increased holdings of essentially all asset classes (this is in part due to the addition of a $108bn fund to the data set this month).... Prime holdings of Agencies rose $29bn, nonfinancial corporate exposure jumped $20bn, and Treasury holdings were up $12bn. Bank credit exposure rose $38bn, mostly in the form of more CP/CDs with European, Canadian and Japanese banks; at the individual issuer level changes were largely idiosyncratic."

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