According to PANews on May 23, CICC research report believes that the simultaneous cold auction of US and Japanese bonds and rising interest rates may reflect the current global liquidity tightening. As an important financing currency, the spillover effect of insufficient Japanese yen liquidity may accelerate the "triple kill" of US stocks, bonds, and exchange rates. We once again remind that as Trump's "one big beautiful bill" is about to pass and the US debt ceiling issue is resolved, the Treasury Department may concentrate on issuing new US bonds in July-September, increasing the risk of systemic liquidity impact on the US market, and the urgency of the Federal Reserve launching QE and other balance sheet expansion policies to rescue the market is increasing.
