Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The panic caused by recent tariffs has led investors to de - leverage and chase cash, resulting in the selling of both safe and risky assets. The 10Y US Treasury yield has risen by up to 60BP from the low of 3.9% on April 7th, approaching 4.5%, and the 10Y breakeven inflation rate has decreased, indicating that the yield increase is due to institutional de - leveraging rather than inflation trading. The selling of US Treasuries may be due to investors selling to replenish margins and hedge funds closing basis trades in high - volatility situations [3]. - The current US Treasury liquidity shock is similar to that in March 2020 but less severe. So far, the shock has not spread to the money market, with stable trading volume in the federal funds market and stable bill financing costs. Off - shore US dollar liquidity has tightened slightly [3]. - The current liquidity shock may not have reached the level requiring Fed intervention. If tariff negotiations progress and the US stock market stabilizes, the selling pressure on US Treasuries may ease, and the liquidity shock may subside spontaneously. However, if external policy shocks intensify market panic, the shock could spread to the money market, and the Fed may provide liquidity support through tools despite a low probability of emergency rate cuts [3]. - In an environment of high policy uncertainty, investors are advised to control their positions in the short term [3]. 3. Summary by Related Information Current US Treasury Market Situation - The 10Y US Treasury yield has risen significantly due to de - leveraging, and the 10Y breakeven inflation rate has decreased, showing non - inflation - driven yield increase [3]. - Credit spreads have widened significantly, while bill financing spreads have remained low. Off - shore US dollar liquidity has tightened marginally, and the federal funds market trading volume has remained stable [3][11][15]. Comparison with 2020 March Situation - The current US Treasury liquidity shock is similar to that in March 2020 but less severe [3]. - In March 2020, the shock lasted nearly ten days, leading to Fed emergency rate cuts and QE. There were a series of events such as stock market circuit - breakers, increased repo投放, and the establishment of multiple Fed facilities [18].