Macro 08/11: Producer inflation rises in reversal, erasing CPI optimism

July PPI higher than expected

July Producer Price Index PPI up 0.3% from previous month, higher than 0.2% forecast, pushing government bond yields higher with 10Y touching 4.16% in the morning.

Of which, service costs led with 0.5% increase, goods prices up slightly 0.1%.

Of which, 7.6% increase in financial investment management service costs contributed up to 40% to service costs.

Deposits inflow into Money Market Funds hits record

Money Market Funds - Money market funds are funds focused on investing in short-term loans, mainly bonds, to generate safe returns for investors. This is considered a way to hold assets instead of cash in a high short-term lending rate environment.