Fed Overnight Reverse Repo Usage at $34.02 Billion

Summary

On Monday, January 12, 2026, the Federal Reserve’s overnight reverse repurchase (RRP) facility usage was $3.402 billion with 11 counterparties, up slightly from the previous trading day’s $3.280 billion.Wallstreetcn

Impact Analysis

So the RRP is effectively empty. This is the big signal everyone’s been waiting for. Remember when this facility held over $2 trillion? Now it’s down to pocket change.Wallstreetcn This means the excess liquidity buffer that absorbed the first phase of quantitative tightening is now gone. From here on, QT will be draining reserves directly from the banking system, which is a much more sensitive process.

The Fed is now flying closer to the ground. They have to be extremely careful to avoid a funding market accident like in 2019. This data point basically starts the countdown clock for the end of QT. The market might be underestimating how quickly the Fed will have to pivot its balance sheet policy. This is a dovish signal for the quantity of money, even if rates stay high. I think this strengthens the case for being long duration; the end of QT is nearer than consensus believes.