Cathay Pacific Haitong released the latest research report stating that the tactical allocation of US debt has been reduced to standard. Against the backdrop of the lack of predictability and repeated changes in the Trump administration's policies, the market's expectations for US economic growth have been drastically lowered, and expectations for inflation have risen sharply. The imposition of extreme high trade tariffs on overseas trading partners has not only led to domestic enterprises and residents being more cautious in their economic activities, but has also challenged and questioned US national credit and US dollar credit. Large fluctuations in financial markets have caused the liquidity crisis to spread further, and the liquidity of the US dollar is under marginal pressure. Expectations for subsequent stagflation transactions may be further strengthened compared to recessionary transactions. The safe-haven nature of US debt is gradually being weakened by the decline in national credit, and the risk-return ratio of its allocation is marginally declining. Judging from the yield curve structure, the allocation cost ratio or phased nature of short-term US bonds is higher than that of long-term US bonds.

Cathay Pacific Haitong released the latest research report stating that the tactical allocation of US debt has been reduced to standard. Against the backdrop of the lack of predictability and repeated changes in the Trump administration's policies, the market's expectations for US economic growth have been drastically lowered, and expectations for inflation have risen sharply. The imposition of extreme high trade tariffs on overseas trading partners has not only led to domestic enterprises and residents being more cautious in their economic activities, but has also challenged and questioned US national credit and US dollar credit. Large fluctuations in financial markets have caused the liquidity crisis to spread further, and the liquidity of the US dollar is under marginal pressure. Expectations for subsequent stagflation transactions may be further strengthened compared to recessionary transactions. The safe-haven nature of US debt is gradually being weakened by the decline in national credit, and the risk-return ratio of its allocation is marginally declining. Judging from the yield curve structure, the allocation cost ratio or phased nature of short-term US bonds is higher than that of long-term US bonds.