Fundamental Analysis - The recent US inflation data showed a year-on-year CPI increase of 2.7% in June, the highest since February, slightly above the expected 2.6% and up from the previous 2.4% [1] - The core CPI also rose by 2.9% year-on-year, meeting expectations but slightly higher than the previous 2.8% [1] - The market anticipates a 62% probability of a 25 basis point rate cut by the Federal Reserve in September, with expectations of nearly two cuts by the end of the year [1] Trade Agreements - President Trump announced a significant trade agreement with Indonesia, which will eliminate tariffs on US imports and involve Indonesia purchasing over $10 billion worth of US goods [2] - The agreement includes Indonesia committing to buy $15 billion in US energy, $4.5 billion in US agricultural products, and 50 Boeing aircraft [2] Technical Analysis - Gold prices have shown a recent peak at 3374.0 after starting from 3250.0, with a recent pullback but maintaining a higher trading focus [5] - The moving averages indicate a bullish trend for gold, suggesting a buy on dips strategy around the support level of 3320.0 [5] - Silver prices have also shown a bullish trend, with a recent high of 39.10 and a recommendation to buy on dips around 37.60 [9]

Group 1 - The latest Producer Price Index (PPI) data shows a 0.1% increase in May, leading to an annual rate of 2.6%, indicating a more moderate inflation environment [1][3] - Initial jobless claims remained stable at 248,000, the highest level since October of the previous year, suggesting potential labor market weakness [3] - The core PPI also rose by 0.1% in May, below economists' expectations of a 0.3% increase, reflecting subdued inflationary pressures [3] Group 2 - European Central Bank's Vice President expressed greater concern over weak economic growth rather than inflation risks, as Eurozone inflation fell to 1.9% in May [4] - UK economic data revealed a 0.3% contraction in April, exceeding economists' expectations of a 0.1% decline, attributed to global trade tariffs and domestic tax increases [4] - Japanese investors slightly reduced holdings in overseas bonds, while foreign investors increased their holdings in Japanese long-term bonds [6] Group 3 - The U.S. Treasury issued $142 billion in bonds, indicating strong demand despite concerns over government debt and deficits [6] - The U.S. budget deficit for May totaled $316 billion, a 9% decrease from the previous year, but the year-to-date deficit increased by 14% to $1.36 trillion [7] - Legislation to create a stablecoin framework backed by U.S. debt could bolster the dollar's status as the world's reserve currency, potentially generating an additional $2 trillion in demand for U.S. bonds [7]

Core Viewpoint - The U.S. Treasury market experienced a positive shift following the release of May's Consumer Price Index (CPI), which was lower than expected, leading to increased bets on potential interest rate cuts by the Federal Reserve [1][2]. Group 1: Economic Indicators - The May CPI rose by 2.4% year-on-year, slightly above April's 2.3% but below the market expectation of 2.5% [1]. - Month-on-month, the CPI increased by 0.1%, lower than both April's and market expectations of 0.2% [1]. - The core CPI, excluding volatile food and energy prices, rose by 2.8% year-on-year, matching April's increase but falling short of the expected 2.9% [1]. Group 2: Market Reactions - Following the CPI data release, the 10-year U.S. Treasury yield fell by 4.95 basis points to 4.42%, while the 2-year yield dropped by 6.66 basis points to 3.95% [1]. - The probability of a Federal Reserve rate cut before September increased by 12.7 percentage points to 70.4% [2]. Group 3: Government Actions and Statements - U.S. Treasury Secretary Mnuchin described the inflation data as "very good," noting that inflation is at its lowest level since 2021 due to slowing costs in housing, food, and energy [2]. - The U.S. Treasury auctioned $39 billion in 10-year notes with a yield of 4.421%, which was lower than the pre-auction market yield [2]. - The demand for the auction remained strong, with indirect bids accounting for 70.6% and direct bids at 20.5%, significantly above the recent averages [2]. Group 4: Fiscal Situation - The federal budget deficit expanded to $316 billion in May, bringing the cumulative deficit for the fiscal year to $1.36 trillion, a 14% increase compared to the same period last year [3].

Core Viewpoint - The article reviews the performance of the dividend style in 2024, analyzes the timing effects of the dividend style in a low interest rate environment from an overseas perspective, introduces dividend stock selection strategies and event effects, and provides an outlook on the future performance of the dividend style in the current low interest rate environment [1][10]. Group 1: Dividend Performance in 2024 - The dividend style showed strong performance in 2024, with excess returns relative to the CSI All Share Index from 2021 to 2024, indicating a stable return profile [3]. - Since the end of May 2024, there has been a degree of internal differentiation within the dividend style, with financial and utility sectors maintaining stability while cyclical sectors experienced some pullback [3]. - Insurance funds have increased their allocation to dividend assets, as evidenced by the top holders of dividend ETFs [3]. Group 2: Timing of Dividend Style - The analysis draws on experiences from the US, UK, Germany, and Japan to assess how dividend and growth styles perform in low interest rate environments [4][14]. - Both dividend and growth styles performed well in low interest rate environments, with annualized returns of 21%, 11%, 8%, and 10% in the US, UK, Germany, and Japan respectively [4][15]. - Growth style is more sensitive to interest rate changes, with dividend style potentially having an advantage during periods of rising low interest rates [4][17]. Group 3: Dividend Stock Selection Strategy - A constrained dividend selection strategy, limiting industry and market capitalization deviations to within 5% of the CSI Dividend Index, achieved a stable excess return of 4.74% in 2024 and an annualized excess return of 7.65% since 2010 [6][33]. - Companies announcing high dividend plans typically achieve excess returns around the announcement date, with a notable effect observed in the period leading up to the ex-dividend date [6][38]. Group 4: Outlook for Dividend Style - The overall outlook for the dividend style in a low interest rate environment is positive, with expectations of absolute returns driven by interest rate trends and the influx of medium to long-term capital [7][37]. - The anticipated decline in interest rates in 2025 may favor growth style, but the expansion of medium to long-term capital inflows could further boost the dividend style [7][36].