On Thursday, the Fed will introduce a new monthly report covering one of its hitherto unpublished reserve-adequacy indicators:  its internal daily estimates of the near-term elasticity of the reserves demand curve.  The general theme of the indictors on the Fed’s bank liquidity dashboard this year has been “no news is good news” and we expect that to be true of the new reserves elasticity update as well.  This week’s newsletter also looks at the quarterly data on domestic bank activity in the fed funds market that were released last week as well as the anomalous drop in FBO holdings of reserve balances in the H.8 report that was released on Friday.  The decline in FBO cash assets is almost certainly a one-week fluke – but we’ll play close attention to the coming week’s report just to make sure.