Last week, saw a mix of data. The manufacturing PMI and ISM surveys for August continued to show weak results at 47.9 and 47.2 respectively, indicating a slower-than-normal economic growth.
The July JOLTS report indicated a 3.0% m/m decrease in job openings to 7.673mn, significantly below expectations.
Furthermore, the ratio of openings to unemployed dropped from 1.16 to 1.07, which is slightly below the pre-pandemic level, and ought to ease concerns about labor market tightness.
The ADP employment report indicated a rise of 99k (consensus: 145k) in private nonfarm payrolls in August, the cycle's lowest.
Weekly initial unemployment claims fell to 227k (consensus: 230k) and continuing claims to 1.838mn (consensus: 1.867mn), the lowest since mid-June.
Nevertheless, we expect CSOPUMM to continue to deliver stable yield in the near term. As of 20240906, the fund has gross yield of 5.46% and net yield at 5.12%. ^
Source: CSOP, Department of Labor, Bloomberg, as of 20240906. ^ 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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