Regarding the situation with government bonds, interest rate cuts, liquidity, and macro narratives, here are some brief thoughts. I won't write a long piece since there hasn't been any new information worth digesting since August 6. 1. Credit environment and yield spreads: The market has already priced in a 25bp rate cut in September and stubborn long-term rates, but it hasn't priced in a recession. The yield spreads between high-yield (HY) and investment-grade (IG) bonds have not widened significantly, indicating that the market still firmly believes in a soft landing, or at least no hard recession. If the yield spreads start to move, it could signal the beginning of a new narrative, such as rising corporate financing pressures.