RRP Hits $55B — A Liquidity Drain? Or a Liquidity Rotation?

Another day, another Reverse Repo headline. With the Fed’s Reverse Repo Facility (RRP) now sitting at just $55 billion, some corners of the market are again shouting bearish. But context matters — and so does understanding what RRP data is actually signalling in 2025.

This isn’t a replay of the 2020 collapse. It’s the structural rotation most aren’t prepared for.