The pressure on US Treasury bonds is becoming evident. Data shows that 26% of US debt will mature before 2027, posing a severe challenge to the Treasury Department. Meanwhile, the Federal Reserve faces a dilemma—liquidity exhaustion and tight systemic funding.

In such a predicament, the only way out is to release liquidity. The market generally expects interest rate cuts and quantitative easing policies to be implemented earlier, possibly sooner than traders currently anticipate. The logic behind this is clear: as the debt crisis approaches, policy tools become an inevitable choice.

What does this mean for traders? Plan ahead and be prepared.