WEEKLY GLOBAL LIQUIDITY UPDATE Global Liquidity increased to US$194.87 trillion in the latest data. The 3-month annualised growth rate slowed further to 2.7% 12-month growth remained at 6.2% Latest data show that headline liquidity has reached a new high at US$194.87 trillion , supported by PBoC liquidity injections, still low volatility, firm collateral values and a weaker US dollar but curbed by weakening Fed liquidity and ongoing ECB and BoJ QT. Annual growth remained steady at 6.2% , while short-term momentum weakened further, with the 3-month annualised growth rate slowing to 2.7% . This suggests that while overall liquidity conditions remain highly supportive, the pace of expansion continues to moderate. Weak Shadow Monetary Base growth confirms that underlying liquidity creation has stalled. Global Liquidity (US$ Trillions) Latest level: US$194.87T (↑ from US$194.44T last week; ↑ from US$194.08T two weeks ago) 12-month growth: 6.2% (unchanged from 6.2% last week; unchanged from 6.2% two weeks ago) 3-month annualised growth: 2.7% (↓ from 2.9% last week; ↓ from 3.9% two weeks ago) Interpretation Headline liquidity rose to a new high of US$194.87T . Annual growth remained stable at 6.2% , while the 3-month annualised growth rate eased further to 2.7% . The divergence between stable annual growth and weakening short-term momentum suggests liquidity conditions remain supportive but are continuing to lose pace. Shadow Monetary Base (SMB) Latest level: US$109.72T (↑ from US$109.63T last week; ↓ from US$110.31T two weeks ago) 12-month growth: -0.1% (↓ from 0.1% last week; ↓ from 0.2% two weeks ago) 3-month annualised growth: 0.8% (unchanged from 0.8% last week; ↑ from -2.9% two weeks ago) Interpretation SMB increased slightly to US$109.72T from US$109.63T the previous week. However, annual growth slipped to -0.1% , indicating that underlying liquidity creation remains subdued. The improvement in short-term momentum to 0.8% reflects base effects and stabilisation from recent weakness rather than a decisive acceleration in liquidity generation. Collateral Multiplier & Volatility Mechanism Volatility ↓ → Haircuts ↓ → Multiplier ↑ → Liquidity ↑ Latest multiplier: 1.78 (↑ from 1.77 last week; ↑ from 1.76 two weeks ago) Interpretation The collateral multiplier increased to 1.78 from 1.77 the previous week, returning to the upper end of its recent range. This suggests collateral conditions remain supportive and continue to provide meaningful support to overall liquidity conditions. Key Takeaways Global Liquidity rose to a new high of US$194.87T , up from US$194.44T the previous week. 3-month annualised growth slowed further to 2.7% from 2.9% . 12-month growth remained steady at 6.2% . SMB annual growth slipped to -0.1% from 0.1% , moving back into negative territory. SMB short-term growth held steady at 0.8% , remaining positive but well below headline liquidity growth. The collateral multiplier rose to 1.78 from 1.77 , providing continued support to liquidity conditions. Overall liquidity conditions remain supportive, although headline short-term growth momentum continues to moderate and underlying liquidity creation remains subdued.