The development of International Financial market in 2007 was characterized by the following aspects：the government bond yields reached to the turning point where the upward pressure turned to be downward；the spillover effect of sub-prime loan crisis originated in the US turned the global excessive liquidity into liquidity crunch；the stock markets worldwide showed a strong bullish trend before the crash in October；the US dollar continued its long-term depreciation；and the global securities markets continued to be active.The determinant factors behind the developments included：the change of economic fundamentals，monetary policies in the major economies，and financial innovations such as carry trade and securitization.