$Nasdaq Composite Index (.IXIC.US)$$S&P 500 Index (.SPX.US)$...

Over the past 18 months, liquidity from Treasury General Account (TGA) and Reverse Repo (RRP) has been more than offsetting the Fed’s QT.

Liquidity from TGA and RRP has exceeded the Fed’s balance sheet reduction by $417 billion.

While the Fed has been reduce liquidity, the US Treasury has been flooding the market with liquidity.

It has been even more evident during the first quarter of this year.

However, RRP levels are down to ~$440 billion from ~$2.3 trillion in just a year while TGA also has its limits.

A trend worth watching.