U.S. May core CPI rose 0.2% MoM, below the 0.3% consensus. U.S. Treasuries
strengthened; yields mostly fell by under 1bp, with the two‑year at 4.11% versus
about 4.13% earlier. Bond traders continue to price a Federal Reserve rate
increase before year‑end. The print was seen as easing some pressure ahead of
Kevin Walsh's first meeting as Fed chair next week. Dan Carter, senior portfolio
manager at Fort Washington Investment Advisors, said: "This gives the Fed a bit
of breathing room."
