The class of reserves referred to as “other” are used to pay the quarterly Treasury interest on bonds. $40B — $50B is paid mid-quarter (August 15). In August of 2021, the SPX fell around the interest payment but rallied right after.
This year, the same pattern could be developing. We might see a drop in the SPX over the next 2–3 days and then a rally until the end of the month.
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