UPDATE: From Oct 18 - Oct 25

US net liquidity roughly DECREASED by -$49.6B.

Fed balance sheet: -$25.3B

ORR: -$50.2B

TGA: +$74.5B

OPINION: For the first time in several weeks, the latest weekly results are net negative for risk assets, all things being equal.

Compared to recent weeks, more liquidity has been added to the TGA while less has been withdrawn from the ORR, likely secondary to lesser issuance of short-dated T-bills by the US Treasury.

Net liquidity is still rangebound since April 2022, and is currently sitting near the center of this range.

Still a crab market until something changes... 🔥🦀🔥