Group 1 - The Ministry of Finance held a mobilization meeting for the preparation of the 2026 central government budget on June 19, 2025, summarizing the progress of budget management over the past year and deploying work for the 2026 budget preparation [1] - Officials from the financial departments of the Ministry of Foreign Affairs, Ministry of Civil Affairs, Ministry of Natural Resources, and Ministry of Ecology and Environment participated in the meeting and shared their insights [1] - Representatives from the National People's Congress Budget Committee and the Audit Office were invited to attend the meeting, indicating a collaborative approach to budget preparation [1]

Group 1 - The U.S. Treasury is reducing the issuance of short-term Treasury bills due to the ongoing debt ceiling impasse, with a planned issuance of $75 billion for four-week bills, down $10 billion from the previous issuance [1] - The Treasury's reduction in short-term debt issuance marks the beginning of a prolonged government financing tightening, with money market funds reducing their allocation to U.S. Treasuries by $278 billion since the beginning of the year [1] - The allocation of money market funds to U.S. Treasuries has decreased from nearly 41% at the end of 2024 to below 38%, while repo agreements have surged by $231 billion, increasing their share from 36% to nearly 39% [1] Group 2 - Treasury Secretary Yellen warned that without raising or suspending the debt ceiling before August, the Treasury could exhaust all means to avoid hitting the borrowing limit [2] - As of May 21, the Treasury had only $67 billion left from "extraordinary measures" to maintain government operations, a decrease from approximately $82 billion on May 14, indicating that about 82% of the available funds have been utilized [2] - The Treasury has net repaid approximately $183 billion in short-term debt supply as of May 29, and further delays in the debt ceiling resolution will necessitate more supply reductions [2] Group 3 - The current debt ceiling stalemate has disrupted the usual rhythm of debt issuance, which typically sees an increase after the tax season [3] - Congressional Republicans are working on a legislative plan to raise the debt ceiling by about $5 trillion, primarily aimed at extending and expanding tax cuts implemented in 2017 [3] - Treasury Secretary Yellen emphasized the importance of raising or suspending the debt ceiling before the mid-July recess to maintain the U.S. government's creditworthiness [3] Group 4 - The shift in fund flows within money market funds is a direct response to the political deadlock in Washington, indicating market participants' reactions to the ongoing situation [4]