The Federal Reserve's ongoing balance sheet expansion (through the RMP bond purchase program) will gradually inject liquidity into the market, which is a positive signal, but it will still take some time for the reserve size to rise above $3 trillion.

Meanwhile, the new regulations following the expiration of the SLR (Supplementary Leverage Ratio) exemption will take effect in early April next year, and many banks are expected to begin adjusting their asset structures in advance starting from the first quarter of 2024 to meet the new regulatory requirements.

These two policy aspects will jointly impact the bond market: on one hand, the Federal Reserve continues to purchase short-term bonds to supplement market liquidity;

on the other hand, the loosening of SLR will encourage banks to gradually increase their holdings of long-term bonds, thereby creating progressive downward pressure on long-end yields — this is not a rapid suppression, but a gradual process of adjustment and digestion.

Although both policies have been clearly defined, their actual effects will take time to gradually emerge. It is expected that by the end of the first quarter of 2024 to the first half of the second quarter, this linkage mechanism will form a more significant market trend. $BNB $XRP #美联储FOMC会议 #美SEC推动加密创新监管