A massive volume of over 100 billion US dollars of liquidity will hit this week! The pressure of US fiscal debt issuance will continue until mid-June, and it is difficult to be optimistic about risk assets in the short term.

Zhtng Cijng APP noted that about two weeks ago, the flow of liquidity from the Ministry of Finance shifted from "support" for risky assets to "restriction". This week will see a particularly large round of liquidity absorption as the Ministry of Finance is increasing its issuance of debt, with net issuance of short-term national bonds close to 590 billion US dollars, and medium and long-term national bond issuance of another 470 billion US dollars. In total, over 1 trillion US dollars of liquidity will need to be absorbed by the market this week.