CSOP USD Money Market Fund Wrap-20240520

Last week, PPI data came in robust than expected as core PPI rose 0.5% in April (consensus: 0.2%).

Headline CPI increased by 0.3% m/m in April, slightly below expectations, while the core CPI matched predictions with a 0.3% rise.

Headline retail sales were flat in April (vs a downwardly revised 0.6% prior) which was lower than anticipated, suggested a potential weakening in the robust consumer demand that has been supporting the economy.

Last Friday, import price inflation was stronger-than-anticipated, with the headline index rising 0.9% in April, surpassing the 0.3% consensus. With that, 3 Fed officials advocated for maintaining high borrowing costs while waiting for signs of easing inflation, indicating no hurry to reduce interest rates.

As a result, despite swaps traders anticipating two cuts in 2024 after Wednesday’s CPI data, expectations fell back to one cut for this year by last Thursday.

Source: CSOP, Department of Labor, Bloomberg, as of 20240517. ^ 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.

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