The Difficult Choices of Banks to Take on More U.S. Bonds

Banks loaded up on Treasuries and Agency bonds. They got flooded with deposits because of all the QE the Fed was doing. Now deposits are shrinking and they're shrinking every single week. So there's less pressure on banks to deploy these deposits. Big banks don't mind deposits leaving because they have too many. It's a small banks that are obviously going to be challenged with the flight of deposits.