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Global liquidity, explained

Plain-English guides to the money and credit behind markets, each with today’s numbers.

• What is global liquidity?
  Global liquidity explained: the money and credit available to the world’s financial system, where it comes from, what moves it, why markets watch it and how to track it.
• Global liquidity and Bitcoin
  Why Bitcoin often moves with global liquidity, what the link does and doesn’t tell you, and how to compare the two yourself, with the latest Global Liquidity Index reading.
• Global liquidity and the stock market
  How global liquidity affects stock prices and valuations, what happened in 2020 to 2022, the limits of the relationship, and the latest Global Liquidity Index reading.
• How quantitative tightening drains liquidity
  Quantitative tightening explained: how the Fed shrinks its balance sheet, how that drains bank reserves and liquidity, what happened from 2022 to 2025, and the latest Fed balance sheet.
• TGA, reverse repo and bank reserves
  How the Treasury General Account, the Fed’s reverse repo facility and bank reserves move liquidity in and out of markets, with the latest values and the Fed Net Liquidity formula.
• The global liquidity cycle
  Global liquidity tends to move in long waves. What a liquidity cycle is, why momentum (the rate of change) matters more than the level, and where global liquidity is now.
• Repo market stress
  What the repo market is, why overnight rates like SOFR sometimes spike, what happened in September 2019, and which indicators show funding stress now.
• How to track global liquidity
  A practical guide to tracking global liquidity: the central bank, Treasury and market data to watch, the FRED series codes, and a free Global Liquidity Index.

Looking for today’s numbers? See liquidity indicators today and the Global Liquidity Index.

General information only, not financial advice. Data can be delayed, revised or wrong. Sources and credits.