AI Data Insight
According to the latest data from DataTrack, the volume of the US depository institutions' Overnight Reverse Repurchase Agreement (ON RRP) facility fell to $333.7 billion in the fourth quarter of 2026 (October 9), further shrinking from $361.8 billion in the previous week. Since reaching a high of $2.5 trillion between 2021 and 2022, the RRP's function as a "buffer" to absorb the impact of the Federal Reserve's quantitative tightening has neared its end. The market is paying close attention to the subsequent substantial impact on bank reserves and overall US dollar liquidity.