CSOP USD Money Market Fund Wrap – 20230918

- Market expects that during the Sep 19-20 FOMC meeting, rates would be held constant. This is supported by swaps tied to the next two FOMC meetings indicating a relatively low chance of a rate hike this week.

- Last Wednesday, core CPI release indicated a 0.3% MoM increase, and a 4.3% YoY rise, aligning with expectations and marking the smallest increase in nearly two years. Nevertheless, it still exceeds Fed's 2% target.

- Meanwhile, Initial jobless claims increased by only 3k to 220k on a seasonally-adjusted basis, below the consensus and Bloomberg’s estimate of 225k. This showcases a softening labor market in the US that is near pre-Covid levels which is what policymakers hoped for. Claims are expected to increase further especially with more high-profiles layoffs, particularly in the financial services and information industries such as the layoff of hundreds of Google recruiters that would take effect later this year.

Source: CSOP, Bloomberg, Bureau of Labor as of 20230915. ^ 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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