ON RRP Facility
$0.6B
Near Zero · WoW: $-0.3B · MoM: $-0.8B
The Overnight Reverse Repurchase (ON RRP) facility allows eligible counterparties like money market funds to park excess cash with the Federal Reserve overnight in exchange for Treasury collateral. This facility provides a floor for short-term interest rates and serves as a critical barometer for excess liquidity in the financial system. When usage is high, it indicates a surplus of cash; conversely, low levels suggest that liquidity has been reabsorbed into the broader economy or Treasury markets.
ON RRP Components
| Measure |
Current ($B) |
WoW ($B) |
MoM ($B) |
| ON RRP Facility |
$0.6B |
$-0.3B |
$-0.8B |
As of March 11, 2026, usage of the Fed’s ON RRP facility stands at a nominal $0.6B, reflecting a stable liquidity environment. This represents a modest $0.8B decrease over the past month, confirming that the facility has effectively been drained of its pandemic-era surplus. The current trend signals a transition from a period of rapid liquidity withdrawal to a steady-state near zero regime.
Liquidity Regime
The current liquidity regime is classified as Near Zero, a stark contrast to the $2.5T peak observed during the height of the post-pandemic cash glut. This stable trend suggests that the vast majority of excess front-end liquidity has already migrated into Treasury bills or private repo markets. With the facility nearly empty, the Fed's balance sheet reduction will now place more direct pressure on bank reserves rather than this secondary buffer.
Historical Parallels
| Date | ON RRP ($B) | 1M Later |
|---|
| Feb 09, 2026 |
$1.3B |
$0.6B |
| Feb 06, 2026 |
$3.1B |
$0.3B |
| Feb 05, 2026 |
$1.7B |
$0.3B |
| Feb 04, 2026 |
$2.4B |
$1.5B |
| Feb 03, 2026 |
$1.8B |
$2.8B |
Historically, periods where the ON RRP facility maintained near-zero balances coincided with a more traditional scarce reserves framework or a finely balanced ample reserves regime. In previous cycles, such levels preceded a period where money market volatility became more sensitive to Treasury issuance cycles and corporate tax dates. Investors should look to the 2018-2019 period as a reminder that low facility usage increases the importance of monitoring the federal funds rate's position within its target range.
Market Snapshot
Note: ON RRP facility usage is a daily liquidity measure with limited direct equity market impact. Focus on broader liquidity conditions.
Market Snapshot
Top Movers
| Stock | Gap | 1M |
|---|
| OXSQH Oxford Square Capital Corp. |
+226.50% |
-69.9% |
| HIMX Himax Technologies, Inc. |
+28.52% |
+14.2% |
| FLY Firefly Aerospace Inc. |
+15.05% |
-16.6% |
| RHLD Resolute Holdings Management, Inc. |
+9.06% |
-23.7% |
| NOVTU Novanta Inc. Tangible Equity Units |
+7.63% |
-8.9% |
Bottom Movers
| Stock | Gap | 1M |
|---|
| NTSK Netskope, Inc. Class A Common Stock |
-19.87% |
+1.3% |
| IPX IperionX Limited |
-12.84% |
+12.5% |
| GIII G-III Apparel Group, Ltd. |
-11.53% |
-1.5% |
| HIMS Hims & Hers Health, Inc. |
-10.66% |
+33.9% |
| PLBL Polibeli Group Ltd |
-10.23% |
+3.3% |
While the ON RRP is a daily liquidity measure with limited direct impact on equity prices, it provides essential context for the overall financial plumbing. Markets generally view the current stability at low levels as a sign that the financial system has successfully adjusted to tighter monetary conditions without significant friction.
Sector Performance
Sector Performance
| ETF |
Price |
Open Gap |
1M |
6M |
1Y |
YTD |
VS S&P 500 |
| XLF Financials |
$49.64 |
+0.68% |
-8.0% |
-6.3% |
+4.8% |
-9.4% |
-5.3% |
| XLK Technology |
$140.43 |
-0.83% |
-2.0% |
+6.1% |
+35.1% |
-2.5% |
+0.7% |
| XLY Consumer Discretionary |
$114.14 |
-0.89% |
-2.9% |
-2.8% |
+16.1% |
-4.4% |
-0.2% |
| XLU Utilities |
$46.17 |
-0.37% |
+6.2% |
+12.6% |
+21.6% |
+8.2% |
+8.9% |
Liquidity-Sensitive Stocks
Liquidity-Sensitive Stocks
| Stock |
Price |
Open Gap |
1M |
6M |
1Y |
YTD |
VS S&P 500 |
| CME CME Group |
$303.33 |
+1.62% |
-1.3% |
+16.0% |
+16.7% |
+11.1% |
+1.4% |
| STT State Street |
$126.00 |
-3.03% |
-6.2% |
+13.3% |
+48.5% |
-1.7% |
-3.5% |
| ICE Intercontinental Exchange |
$157.02 |
+1.53% |
-7.4% |
-9.2% |
-6.4% |
-3.1% |
-4.6% |
| BK BNY Mellon |
$117.12 |
-1.96% |
-8.2% |
+12.3% |
+41.3% |
+0.9% |
-5.5% |
| JPM JPMorgan Chase |
$287.52 |
-1.50% |
-10.7% |
-3.0% |
+25.8% |
-10.4% |
-8.0% |
| MS Morgan Stanley |
$160.89 |
-4.05% |
-11.8% |
+6.3% |
+47.1% |
-9.4% |
-9.1% |
| BLK BlackRock |
$951.17 |
-1.90% |
-11.9% |
-14.0% |
+5.0% |
-11.1% |
-9.2% |
| GS Goldman Sachs |
$823.76 |
-2.24% |
-12.7% |
+7.8% |
+56.5% |
-6.3% |
-10.0% |
| SCHW Charles Schwab |
$92.67 |
+0.30% |
-13.6% |
-1.1% |
+30.9% |
-7.2% |
-10.8% |
| BAC Bank of America |
$48.52 |
-1.69% |
-14.0% |
-3.5% |
+23.2% |
-11.8% |
-11.3% |
Stable liquidity conditions at the zero bound typically support a neutral environment for financials like JPMorgan Chase (JPM) and Goldman Sachs (GS), as funding costs remain predictable. For growth-oriented technology firms such as Nvidia (NVDA) and Microsoft (MSFT), the lack of further liquidity draining from the RRP facility removes a potential headwind for valuation multiples. Consumer discretionary names like Amazon (AMZN) benefit from the resulting stability in short-term credit markets. However, utilities like NextEra Energy (NEE) may face increased sensitivity to any sudden spikes in overnight rates that could occur now that the RRP buffer is exhausted.
Positioning
Investors should maintain a balanced posture, as the Near Zero regime indicates that the easiest phase of liquidity normalization is complete. Focus on high-quality balance sheets in the XLK and XLF sectors that can withstand potential shifts in reserve availability. A sudden, sustained spike in ON RRP usage or a breach of the SOFR-FF basis would be the primary signals to shift toward a more defensive, cash-heavy allocation.