Banks borrowed a combined $164.8 billion from two Federal Reserve backstop facilities in the most recent week, a sign of escalated funding strains in the aftermath of Silicon Valley Bank’s failure.

Data published by the Fed showed $152.85 billion in borrowing from the discount window  — the traditional liquidity backstop for banks — in the week ended March 15, a record high, up from $4.58 billion the previous week. The prior all-time high was $111 billion reached during the 2008 financial crisis.

The data also showed $11.9 billion in borrowing from the Fed’s new emergency backstop known as the Bank Term Funding Program, which was launched Sunday. (Continue Reading – Bloomberg)

Investors held tight to bets that banking jitters would rein in the ECB's ability to jack up borrowing costs again in the months ahead, as the central bank delivered a large rate hike on Thursday but wouldn't signal future moves given an uncertain outlook.

The European Central Bank stuck to a 50 basis-point hike, as promised at its previous meeting.

Traders had cast doubt on that move given market turmoil sparked by the collapse of U.S. lender Silicon Valley Bank last week, followed by a rout in Credit Suisse shares spreading banking jitters to Europe this week. (Continue Reading – Reuters)

Japan's core consumer inflation likely slowed sharply in February from a 41-year high in the previous month, a Reuters poll of 20 economists showed, as government subsidies for gas and electricity bills cushion rising living costs.

The core consumer price index (CPI), which excludes volatile fresh food but includes oil products, likely rose 3.1% year-on-year in February, the poll showed.

That followed a 4.2% rise seen in January, which was the highest reading since December 1981 when the Middle East crisis pushed Japan's inflation to 4%. The data is due out at 8:30 a.m. on March 24 (2330 GMT March 23). (Continue Reading – Reuters)