CSOP USD Money Market Fund Wrap – 20240318

- Last week, CPI report came in stronger-than-anticipated where both headline and core CPI rose 0.4% MoM in February (vs. 0.3% and 0.4% prior, respectively), and headline CPI rose to 3.2% (vs 3.1% prior) and core CPI moved downwards to 3.8% (vs 3.9% prior). Nevertheless, it is important to note that owners’ equivalent rent (OER) indicated January’s surprise rise was just noise, and did not indicate rent inflation. Similarly,the headline PPI likely rose 0.4% month over month- up from 0.3% prior - amidst a rebound in energy prices.

- February’s headline retail sales was below expectations at 0.6% growth,against consensus expectations for a 0.8% rise. The weaker-than-anticipated rebound in headline retail sales where building materials and garden equipment made up majority of sales growth is an indication that consumers are running out of spending capacity as they run low on savings and stay wary about borrowing with high interest rates.

- Initial jobless claims for the week ending March 9 declined to 209k from 210k prior,and below the consensus estimate of 218k. While jobless claims have been indicative of very low layoff rates, the unemployment rate rose to 3.9% in February, and job cut announcements continue, foreshadowing future layoffs, according to a March 7 report from Challenger, Gray & Christmas, Inc.

- The FOMC meeting on 20 March will be the most important event next week.

Source: CSOP, Bloomberg, as of 20240315. ^ Gross yield is based on annualized yield of underlying holdings. 7-day net yield is calculated based on calendar days and NAVs in 5-decimal.For illustrations only, not to be construed as recommendation to buy/sell securities in the above-mentioned sectors.

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