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

Odaily Planet Daily News: Analyst Afonso Borges from 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 "reasonable," as the better-than-expected inflation data should reduce the risk of the Federal Reserve raising interest rates later this year. "Market reaction was markedly more subdued compared to the sharp volatility triggered last Friday when the employment report came in stronger than expected," the fixed-income analyst stated. He pointed out 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 volatility range is "very mild, less than half the average fluctuation range on employment report release days." (Jinshi Data)