Institution: Short-term U.S. Treasury bonds are typically less sensitive to CPI than to employment data

According to a report by Odaily Planet Daily, analyst Afonso Borges of Baosteel Group pointed out that the modest rebound led by short-term government bonds following the release of the U.S. May CPI report on Wednesday is "reasonable." This is because the better-than-expected inflation data should reduce the risk of the Federal Reserve raising interest rates later this year. The fixed-income analyst stated, "Compared to the sharp volatility triggered by last Friday's stronger-than-expected employment report, the market reaction this time is notably more moderate." He noted that the average fluctuation range of the two-year Treasury yield on the release days of the past 12 inflation reports was only 3 basis points. This fluctuation range is "very mild, less than half the average fluctuation range on employment report release days." (Jin Shi)