Global liquidity The Fed Minute video series
Laurie Brignac
June 23, 2026
Global liquidity Invesco Global Liquidity Monthly
Invesco Global Liquidity commentary on cash and short‑term markets
Explore insights from the Invesco Global Liquidity team on trends influencing cash and short‑duration markets. Each monthly commentary provides an overview of the market and rate environment, liquidity and funding conditions, and includes recent market data and trend charts highlighting key themes.
June 2026
Recent policy and market developments reflected a transition in Federal Reserve leadership, as Kevin Warsh was sworn in as a member and chairman while Jerome Powell remains on the Board and a voting FOMC member. Near-term economic data do not appear to support policy rate cuts, and market expectations have adjusted accordingly. In funding markets, repo rates and SOFR briefly softened in mid-May before rebounding to levels more closely aligned with the effective federal funds rate. Short-term U.S. Treasury yields moved higher, particularly across two- to five-year maturities, while corporate credit spreads continued their improving trend. Following the customary decline around April Tax Day, U.S. money market fund assets rebounded in May, driven by early-month inflows.
Important information
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All data as of May. 31, 2026, unless otherwise stated. All data provided by Invesco unless otherwise noted. All data provided is in USD.
The opinions expressed are those of the authors and are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties, and assumptions; there can be no assurance that actual results will not differ materially from expectations.
FOMC: The FOMC (Federal Open Market Committee) is the branch of the Federal Reserve Board (the Fed) that sets U.S. monetary policy.
SOFR Rate: The Secured Overnight Financing Rate is a benchmark interest rate based on actual overnight borrowing transactions collateralized by U.S. Treasury securities in the repo market.
Effective Federal Funds Rate: The actual, market-determined median interest rate at which banks lend excess reserves to each other overnight.
Credit Spreads: The difference in yield between a corporate bond (or other debt security) and a risk-free government bond of similar maturity.
Repurchase Agreement (Repo) Rate: The implicit interest rate on a repo transaction, which is determined by the difference between the sale and repurchase prices.
Fixed-income investments are subject to credit the effects of changing interest rates. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to risk of the issuer and meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
Treasury securities are backed by the full faith and credit of the US government as to the timely payment of principal and interest.
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