History · 3 years
Overview · Conditions index · updated daily
About the Financial System Liquidity Sentiment
Alternative data signal monitoring financial system liquidity conditions - capturing tightening or easing pressures in interbank markets, repo activity commentary, and risk appetite signals.
Central bank communication cycles — FOMC meetings, minutes releases, and Chair speeches — can shift sentiment readings sharply within minutes. Divergences between the Sentiment and Awareness scores are particularly informative: elevated Awareness with flat Sentiment often signals a policy event is being absorbed, not yet resolved.
Key drivers
- FOMC meeting statements and minutes
- Fed Chair speeches and congressional testimony
- Dot plot rate projections
- CPI and PCE inflation releases
- Non-farm payrolls and unemployment data
Reading the Conditions scale
- 0-20Severely TightCoverage dominated by risk-aversion signals; narrative heavily skewed toward tight conditions.
- 21-40Now · 33TightBelow-neutral conditions with cautious market positioning; optimism subdued relative to the 30-day baseline.
- 41-60BalancedBalanced coverage with no clear directional bias. Market is in a wait-and-see posture, awaiting a catalyst.
- 61-80LoosePositive momentum building in the narrative; coverage tilting toward loose catalysts and upside scenarios.
- 81-100AbundantElevated risk of mean-reversion. Watch for sentiment exhaustion signals and divergence from the Awareness score.
How to use this index
- Use the Conditions score to gauge the prevailing narrative bias for Liquidity Conditions at a glance.
- The Awareness score flags unusual spikes in coverage - early-warning signals that often precede price moves.
- Extreme readings (0-20 or 81-100) historically mark periods of heightened volatility and potential reversals.
- Compare across related topics to find cross-asset divergences and correlation breakdowns.
- Pro subscribers can view 3 years of history to calibrate thresholds against past market regimes.
This index is frequently referenced alongside liquidity conditions, financial system liquidity, ai market sentiment, internet liquidity sentiment, alternative data finance - helping traders and analysts track Liquidity Conditions conditions shifts in real time.
Latest news
Liquidity Conditions in the news
The headlines feeding this index, newest first.
Eurozone Liquidity Falls as Euribor-ESTR Spread Widens
Eurozone excess liquidity is falling fast enough to draw hedge funds into a new rates trade betting that Euribor will rise faster than ESTR as the European Central Bank drains cash from the banking system.
Read moreSEBI Keeps India Closing Auction System
SEBI has said India will keep its new closing auction system in place, easing fears that the regulator might roll back a reform that has already begun reshaping how equities and derivatives are priced at the close.
Read moreEurozone Euribor-ESTR Spread Widens as Reserves Fall
Excess cash in the eurozone banking system is shrinking fast enough to create a new and increasingly crowded relative-value trade, as hedge funds bet that Euribor will rise faster than ESTR and widen the gap between the bloc’s two key funding benchmarks.
Read moreIndia Inc locks in debt as liquidity stays ample
India’s biggest companies are moving quickly to lock in domestic funding while bank liquidity remains flush and before the Reserve Bank of India is forced to confront a new inflation risk from higher crude prices.
Read moreIndian banks SAL withdrawal lowers funding costs
Withdrawal of the statutory liquidity ratio add-on known as SAL is likely to ease funding costs for Indian banks without meaningfully tightening system-wide liquidity, a shift that matters because it can improve margins for lenders while leaving the broader money market largely intact.
Read moreBitcoin tops $80,000 on U.S. policy and institutional shifts
Bitcoin’s latest surge has revived the argument that the cryptocurrency’s core value proposition is becoming stronger even as its biggest critics warn it remains a conduit for crime and systemic risk.
Read moreNvidia, SOXX and AI stocks face forced-selling risk
Forced selling, not a gradual repricing of AI winners, is the market risk investors should be focused on as crowded positions start to meet thinner liquidity and a more fragile funding backdrop.
Read moreJPMorgan Chase deposits lead U.S. banks
JPMorgan Chase has emerged as the bank with the biggest pile of deposits in the U.S. system, and that matters because cheap, stable funding is still one of the most powerful advantages in banking. In a world where deposit rates remain highly uneven and customers can still shop around for better yields, the institutions that hold onto core deposits can lend more, fund more trading and advisory activity, and protect margins better than rivals.
Read moreOvernight interbank rate eases to 0.7% in July
The overnight interbank interest rate eased to 0.7% at the end of July, a sign that short-term funding is loosening as liquidity returns to the market and reducing the immediate strain on banks that had been operating in a tighter cash environment.
Read moreHealthcare Liquidity Risks Rise as Rates Stay High
Healthcare providers are being squeezed by a mix of elevated interest rates, tighter credit conditions and uneven operating cash flow, making liquidity the sector’s most immediate financial risk even as policymakers push digital upgrades and broader access.
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Methodology
How the index is built
Data sources, scoring and update cadence, in plain terms.
What is the Liquidity Conditions index?
Alternative data signal monitoring financial system liquidity conditions - capturing tightening or easing pressures in interbank markets, repo activity commentary, and risk appetite signals.
How is the Liquidity Conditions index calculated?
The Liquidity Conditions index is derived from AI-powered NLP analysis of thousands of online news sources, blogs, and financial commentary. Sentiment scores range from 0 (Severely Tight) to 100 (Abundant), where 50 represents balanced conditions. Awareness scores capture the volume and breadth of coverage for this topic across the media landscape.
How often is the Liquidity Conditions index updated?
The underlying data pipeline runs once per day. However, the gauge and score displayed on this page reflect a processed snapshot that may be 3–24 hours behind real-time, depending on the topic's update cadence and how quickly new data clears the processing pipeline. The exact timestamp of the data shown is visible in the gauge footer - hover the info icon to see it in your local time.
Why does the gauge show data from a few hours ago?
The gauge reflects a processed data snapshot, not a live feed. Depending on the topic, displayed values can be 3–24 hours behind real-time - fast-moving topics (crypto, equities) update more frequently, while slower-cycle topics (macro, real estate, geopolitics) may have a longer lag. The precise data timestamp is always visible in the gauge footer: hover the info icon to see it in your local time.
Why use sentiment analysis?
Sentiment uses natural language processing to analyze and quantify investors' opinions, which is different from traditional indicators like volatility (VIX), volume, or price trends. This gives you an edge over others who rely solely on price-based data.
How to interpret the figures?
The gauges show the latest indicator percentiles for the last two quarters. Values above 50 mean an upward trend, while below 50 means a downward trend. A reading above 70% signals greed, and below 30% signals fear. When price and sentiment trends diverge, it's a strong sign the trend will continue.
What does awareness represent?
Besides sentiment, we also provide a measurement of awareness - an indicator of media activity expressed as a ratio of topic-dedicated data compared to the total. Values over 50 indicate an increasing media trend and growing investors' interest; less than 50 signals decreasing attention.
What is sentiment analysis and why measure it?
Sentiment analysis is a way to determine whether a piece of text is positive, negative, or neutral. It helps understand how people feel about a topic or product, which is very important for investment, revenue management, and gauging public opinion. It adds important data points to the decision process and is valuable input for many statistical and AI models.
What are some of the key data characteristics?
Raw signals are gathered from proprietary sources covering over 50,000 outlets and ingested every 15 minutes. Processed gauge readings are derived from these signals but are displayed with a delay of 3–24 hours depending on the topic - the exact data timestamp is always shown in the gauge footer. The platform includes 5 years of history, supports 72 languages, and processes over 1 million unique entries daily. Adalytica maintains over 99.5% uptime across all products and data services.
Who benefits the most from the sentiment data?
The products are widely used across various industries, including finance, real estate, cryptocurrency, commodities, and government. They provide tailored insights for tasks like tracking voter sentiment, optimizing investment strategies, or monitoring brand perception. We offer products that are tailored for both beginners and advanced data professionals.