As of the second quarter of 2024, the tradable balance of US bonds is approximately 27.05 trillion USD, of which medium-term US bonds account for more than 50%. In the long run, on the supply side, it is expected that the scale of the US deficit and TGA balance will remain high in the next few years, and the US bond market may face long-term and continuous supply pressure; on the demand side, the private sector in the United States has been the absolute main force in increasing its holdings of US bonds in recent years, while overseas sovereigns have reduced their holdings against the backdrop of de-dollarization. In the short term, the issuance of US Treasury interest-bearing bonds by the US Treasury may not increase significantly, and we expect the Federal Reserve to end this round of balance sheet reduction at the end of this year or early next year, and the supply and demand of US bonds will be balanced.