Why do US Treasury auctions affect risk assets? New bond auction=sucking liquidity US bond auctions are a net financing activity, especially when repaying old debts and the fiscal deficit continues to expand. If investors are not optimistic about the current interest rate (expecting future interest rates to be even higher), they must offer a higher bid rate to attract investors' participation, which directly increases the cost of issuing bonds for the Ministry of Finance and drives up the yield of the entire secondary market. Upward yield=outflow of funds from the risk market Bonds have become more attractive, attracting funds that should have been invested in risky assets such as stocks and cryptocurrencies into the bond market, especially those that are more sensitive to high valuation assets. Rising borrowing costs=real downward pressure on the economy Higher medium and long-term yields drive up corporate financing and mortgage interest rates, Not only does it suppress corporate profit expectations, but it also lowers market confidence in future growth. Another slight improvement this time is that the proportion of foreign investors buying 20-year US Treasury bonds has slightly increased, slightly reducing some of the bond market's blood sucking on domestic funds in the United States. This tweet is sponsored by @ ApeXProtocolCN | Dex With Apex