CICC: The spillover effects of insufficient yen liquidity may accelerate the "triple kill" of US stocks, bonds, and foreign exchange rates

China International Capital Corporation (CICC) Research Report believes that the simultaneous auction of US and Japanese bonds has cooled down and interest rates have risen, which may reflect the current tightening of global liquidity. As an important financing currency, the spillover effect of insufficient liquidity in the Japanese yen may accelerate the "triple kill" of US stocks, bonds, and foreign exchange rates. We would like to remind you once again that with the imminent passage of Trump's "One Big Beautiful Bill" and the resolution of the US debt ceiling issue, the Treasury Department may concentrate on issuing new US bonds from July to September, increasing the risk of systemic liquidity shocks to the US market. The urgency for the Federal Reserve to implement QE and other expansion policies to rescue the market is growing.