CSOP USD Money Market Fund Wrap - 20240506

•Last Wednesday, at the FOMC meeting, the Fed kept rates constant at 5.25%-5.50% for the sixth consecutive meeting.

•The dovish FOMC statement and less-hawkish-than-anticipated Powell’s Q&A emphasized that a rate hike is unlikely to be the next policy move. As predicted, the US Treasury maintained the coupon auction size while increasing TIPS sizes. The Treasury also announced no plans for cash management buybacks this quarter but initiated the liquidity support buyback program.

•Last Thursday’s data release indicate GDP cooled in Q1 while employment cost increased by the most in a year (+4.7% q/q), a sign that inflation is persistent, supporting the Fed’s hawkish pivot to keep rates high for longer than expected.

•Bond traders have shifted expectations for the first full Fed rate cut earlier by a month to November.

Source: CSOP, Bloomberg, as of 20240503. ^ 7-day net yield is calculated based on calendar days and NAVs in 5-decimal. For illustrations only, not to be construed as recommendation to buy/sell securities in the above-mentioned sectors.

“The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”).This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions.

CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information, and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.”