Tax payments and repayment of TFF have seen funds debited out of ES balances last week.
ESA balances are at $396Billion, the lowest since March 2023.
Over the next 5 weeks we will see ESA balances fall by a further $46Billion.
This draining of funds may add to tighter financial conditions and added strain in liquidity.
Liquidity has certainly returned to the market since last quarter however this lowering of ESA balances is something to consider going forward.
U.S. Job Openings A Step In The Right Direction
Job openings in the US decreased by 338,000 to 8.827 million in July 2023.
This was the lowest level since March 2021 and below the expected 9.465 million.
The decline marked the third consecutive month of reduced job openings.
This suggests a gradual slowdown in the labor market due to the Federal Reserve’s tight monetary policy.
The quits rate, has fallen back to pre pandemic levels of 2.3%. This may reflect workers holding onto jobs as they believe it is not as easy to find another one.
This cooling of the labour market is a step in the right direction for the Fed in their battle against inflation.