Global Liquidity Watch: Weekly Update

Liquidity Slips, Risks Rise

Global liquidity has dipped to US$188.9tr due to a stronger dollar, rising bond volatility, and weaker collateral. Support from PBoC injections and improving Fed liquidity is outweighed by these negative factors and ongoing BoJ QT and weak ECB/BoE conditions. Investors remain broadly risk‑on, though both EM and DM exposures have been trimmed. Weakening liquidity conditions will weigh on risk assets.