• Wall Street equities saw mixed results on June 12, with the DJI gave up by -0.09%, the S&P 500 advanced by +0.85%, and the Nasdaq rose by +1.53%.
• US stocks advanced on Wednesday as investors absorbed the Fed's latest policy decision. The S&P 500 and Nasdaq set new record highs, while the Dow slipped into the red after the FOMC forecasted only 25 bps of rate cuts this year, down from 75 bps in March.
• The 10-yr UST yields dropped by -8.0 bps to 4.31%, while the 2-yr yields slipped by -6.0 bps to 4.75%. Bond yields declined amid signs of cooling inflation from the US May CPI report on Wednesday.
• The US CPI unexpectedly fell to 3.3% YoY in May 2024, marking a three-month low, compared to 3.4% YoY in April and the anticipated 3.4%. YoY Core inflation also slowed to 3.4% YoY, the lowest rate since April 2021, falling below the consensus estimate of 3.5% YoY.
• As expected, the FOMC unanimously voted on Wednesday to maintain the fed funds target range at 5.25%-5.50%. The committee stated that rate cuts are unlikely until there is greater confidence that inflation is moving sustainably toward 2%.
• In Asia, China's inflation rate stayed at 0.3% YoY in May 2024, under the 0.4% YoY forecast, marking four consecutive months of consumer inflation and suggesting a recovery in domestic demand. Meanwhile, core CPI rose 0.6% YoY, slightly less than April's 0.7% YoY.
• Global bond yields closed lower on Wednesday: the German bund yield fell by -9.2 bps to 2.53%, while the 10-yr UK gilt yield tumbled by -14.0 bps to 4.13%, and the Japanese 10-yr JGB yield dropped by -4.1 bps to 0.99%.
