I don't know if those watching have avoided this wave of decline... the next turning point is coming soon, and everyone can continue to pay attention!

‘The Federal Reserve stabilizes market confidence, most investors are waiting for the uncertainty to resolve in April’

Figure 1, US TGA vs ONRRP

Last week, the FOMC once again released positive signals. The FED will gradually reduce the pace of balance sheet contraction starting April 1, especially lowering the monthly limit for reinvesting U.S. Treasuries maturing at $25 billion to $5 billion, while maintaining MBS. Overall, the pace of balance sheet reduction has decreased by $20 billion (equivalent to releasing $20 billion in liquidity), which also suggests that the balance sheet reduction is about to end. As shown in Figure 1, TGA accounts continue to release liquidity, while ONRRP has slightly rebounded, with overall net liquidity performance increasing, which is acceptable.