Why did the market suddenly lose blood last night? Interpretation of the truth under liquidity tightening. This morning's drop indeed caught many off guard, and the core reasons boil down to two points: liquidity being drained + interest rate cut expectations cooling. Where did the liquidity go? Last night, the U.S. Treasury conducted auctions for 3-month and 6-month Treasury bills, with a total scale of up to 163 billion dollars. This massive amount was directly withdrawn from the financial market, equivalent to a sudden loss of 1.6 trillion RMB in the market. During this special period of government shutdown and the stopping of "point shaving" from the Treasury account (TGA), this blood-drawing effect is magnified, and risk assets are the first to bear the brunt. The interest rate cut expectations were further hit, as Fed official Goolsbee maintained a hawkish stance, causing the probability of a rate cut in December to drop from 69.8% to 67.5%. Although this is just a slight pullback, any hawkish signal during this sensitive period will shake market confidence. When will the market improve? The key is to watch for two signals: the U.S. government reopening and fiscal operations resuming | The Fed supplementing liquidity to the market through reverse repos and other tools. The advice to investors during this liquidity tightening period is to control leverage and keep cash. The market is not lacking in opportunities, but rather in patience. Once signs of liquidity improvement appear, those assets with good fundamentals will certainly rebound first. #参与创作者认证计划月领$10,000