Morgan Stanley made it clear that the recent sell-off in U.S. Treasuries is purely a violent forced liquidation, with liquidity severely drained. Traders have gone from fantasizing about rate cuts to pricing in rate hikes.
This feels somewhat familiar, a typical liquidity black hole. Short-term interest rates have soared, acting as a powerful suction pump, draining funds from risk assets completely. Major institutions are not looking to sell; they are being forced to sell due to damaged positions, and this type of "forced liquidation" is the most likely to trigger a chain reaction. The macro backdrop has shifted from "easing expectations" to "tightening fears," and compared to the previous stable days of U.S. Treasuries, this wave of selling pressure has indeed left the market a bit stunned. It’s challenging for BTC to break out into an independent market in the short term, as no one can resist the violent surge in U.S. Treasury yields; everyone still needs to keep a close eye on liquidity indicators.
Do you think the Federal Reserve will just watch the bond market collapse this time? #MacroeconomicAnalysis #USTreasuries #Liquidity #FederalReserve #摩根士丹利 $BTC $ETH
