DTCC's New Money Market Snapshot
DTCC announced the launch of a "Money Market Kinetics Weekly Snapshot. The website explains, "In times of unprecedented market volatility, providing market transparency is critical. Our new DTCC Money Market Kinetics Weekly Snapshot, derived from the DTCC Money Market Kinetics product, offers insights into the 3.1 trillion dollar money markets. The report, which will be published to this page each week, derives its insights from DTCC Money Market Kinetics. The service offers daily anonymized CP and institutional CD transaction data." The inaugural update comments, "Liquidity in Corporate Commercial Paper (CP) and Institutional Certificates of Deposit (CD) has decreased precipitously in recent weeks. Last month, the Federal Reserve responded by creating a new funding facility to ensure liquidity and free up short-term lending." DTCC's report features weekly and monthly charts and "Data Insights." They write, "For the week of March 30-April 3: Fixed-rate CD settlements increased from $18 billion the prior week to $36 billion, but remain lower than the prior 52-week average which was $44 billion prior to March 16, 2020. Variable-rate CD settlements increased to $2.641 billion from $748 million the prior week. The rate remains significantly lower than the prior 52 weeks, which averaged $12 billion per week. Fixed-rate CP settlements declined from over $600 billion to $530 billion, and remain above the prior year weekly average. Variable-rate CP settlements declined to $1.6 billion, compared to a weekly average of $7 billion. For the month of March 2020: Below are the total settlement amounts and the percentage change as compared to the prior 12-month averages. Fixed-rate CD: $133B, down 32% from $195B; Variable-rate CD: $14B, down 76% from $58B; Fixed-rate CP: $2.1T, up 19% from $1.8T; Variable-rate CP: $13B, down 60% from $32B."
