Over the past week, a series of secondary economic releases were scheduled, most of which reported lower-than-expected results compared to the market consensus.
Despite this, treasury bond yields experienced a significant increase throughout the week, primarily driven by short-duration bonds. This surge can be attributed to a reversal in the sharp rally observed following the recent CPI report and Federal Reserve minutes released on May 22.
This fluctuation may persist in the bond market in the near term. That being said, short-term maturities are nearing their recent peaks following the sell-off, presenting an appealing opportunity for a tactical bullish perspective.
Thus, we expect CSOPUMM to continue to deliver stable yield in the near term. As of 20240524, the fund has gross yield of 5.59% and net yield at 5.19%^. In the coming week, the PCE and core PCE will remain the key releases to watch.
Source: CSOP, HSBC, as of 20240524. ^ 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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