US May core inflation unexpectedly cools, traders still bet on Fed rate hike before year-end

Odaily reports U.S. core CPI rose 0.2% month-on-month in May, below market expectations of 0.3%. U.S. Treasury bonds edged higher, and bond traders maintained their bets that the Federal Reserve will raise interest rates before the end of the year. The data is seen as easing some pressure on the Fed ahead of Kevin Warsh's first meeting as Fed chair next week.

After the CPI release, most U.S. Treasury yields fell by less than 1 basis point. The two-year Treasury yield, which is more sensitive to near-term monetary policy changes, stood at 4.11%, down from around 4.13% earlier in the session. Dan Carter, senior portfolio manager at Washington Fortress Investment Advisors, said, "This gives the Fed a little bit of breathing room." (Jinshi)