Reverse Repo vs S&P 500
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
RRP balances represent cash parked at the Fed, effectively sterilized liquidity. Rising RRP and rising SPY together (as 2022) signals equity resilience despite liquidity drain. Falling RRP with rising SPY (as 2024-2025) reflects money flowing back into risk assets, supporting equities beyond what balance-sheet trends alone would suggest.
Cross-Asset Analysis
This page pairs Overnight Reverse Repo (ON RRP facility balance, liquidity buffer absorbing QT before reserves drain) against S&P 500 ETF (SPY) (SPDR S&P 500 ETF, tracks the benchmark US equity index) to surface the specific macro signal that lives in the cross asset pair relationship. Cross-asset flows track macro regime changes with well-documented lags, which is why spreads like Overnight Reverse Repo-S&P 500 ETF (SPY) often precede coincident indicators. Macro funds use the Overnight Reverse Repo-S&P 500 ETF (SPY) spread to implement views cleaner than single-asset trades, distilling the specific macro factor they want to bet on.
Real yields, liquidity conditions, and the dollar underlie most cross-asset relationships, and when these change Overnight Reverse Repo and S&P 500 ETF (SPY) both respond at different speeds. Watching Overnight Reverse Repo in tandem with S&P 500 ETF (SPY) offers insight into how macro factors propagate across different parts of the global market structure. Implied volatility regimes in Overnight Reverse Repo and S&P 500 ETF (SPY) transmit through gamma flows that couple one market to the other via dealer balance sheets.
The Liquidity and Equity Index domains hold in common underlying drivers but differ in sensitivity, and the Overnight Reverse Repo-S&P 500 ETF (SPY) spread expresses those sensitivities. Cross-asset pairs like Overnight Reverse Repo compared with S&P 500 ETF (SPY) surface the macro variables that span asset classes: liquidity, inflation, real rates, and risk appetite.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between Overnight Reverse Repo and S&P 500 ETF (SPY)?+
Overnight Reverse Repo and S&P 500 ETF (SPY) are connected through shared macro drivers across asset classes. When the dominant macro driver shifts, both respond, though with different sensitivities and at different speeds. The spread between Overnight Reverse Repo and S&P 500 ETF (SPY) captures the specific macro signal that flows through this relationship.
When does Overnight Reverse Repo typically lead S&P 500 ETF (SPY)?+
Overnight Reverse Repo tends to lead S&P 500 ETF (SPY) during macro regime changes, where the more liquid asset moves first. In those periods, moves in Overnight Reverse Repo precede corresponding moves in S&P 500 ETF (SPY) by days to weeks, depending on the transmission channel and the depth of each market.
How are Overnight Reverse Repo and S&P 500 ETF (SPY) historically correlated?+
Long-run correlation between Overnight Reverse Repo and S&P 500 ETF (SPY) varies by regime. Cross-asset correlations vary by regime, tending to tighten in stress and loosen during normal conditions. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the Overnight Reverse Repo-S&P 500 ETF (SPY) relationship.
What macro conditions drive divergence between Overnight Reverse Repo and S&P 500 ETF (SPY)?+
Divergence between Overnight Reverse Repo and S&P 500 ETF (SPY) typically arises from idiosyncratic shocks in one asset, policy interventions, or structural shifts in demand. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in Overnight Reverse Repo or S&P 500 ETF (SPY).
Is Overnight Reverse Repo a hedge for S&P 500 ETF (SPY)?+
Cross-asset hedges between Overnight Reverse Repo and S&P 500 ETF (SPY) work when the macro drivers of the two assets are sufficiently decorrelated, which depends on the regime and therefore needs to be reviewed as conditions change. Effective hedging requires matching the hedge to the specific risk being protected, and the Overnight Reverse Repo-S&P 500 ETF (SPY) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.