Institution: Short-term U.S. Treasuries are generally less sensitive to CPI reactions than to employment data

Odaily Planet Daily News: Analyst Afonso Borges at Julius Baer Group noted in a report that the modest rally led by short-term Treasuries following the release of the U.S. May CPI report on Wednesday is "justified," as 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: "The market reaction this time is significantly more subdued compared to the sharp volatility triggered by the stronger-than-expected employment report last Friday." He pointed out that over the release days of the past 12 inflation reports, the average fluctuation range of the two-year Treasury yield was only 3 basis points. This fluctuation range is "very modest, less than half the average fluctuation range seen on employment report release days." (Jin Shi)