Wall Street’s main indexes closed lower, as yield on the 10-year US Treasury rose to 2.79%, its highest level in three years. The stock and US bond markets responded negatively to speculations of a 50 bps increase in the Fed Funds Rate at the Fed’s May, June, and July meetings, respectively. Based on a Reuters survey, the US Consumer Price Index (CPI) for March reached 8.4% YoY (vs. Feb. 7.9% YoY). Reuters also projects a US recession of 40% next year.

Yesterday, JCI touched an all-time high of 7,354, before finally closing slightly lower by 7 points to a level of 7,203. Market participants were looking forward to the release of US CPI data for the March period on an annual basis, which is projected to be 50 bps higher than the previous month. If that happens, it will be the highest US inflation since 1981. NHKSI Research projects that the JCI will move downward within a range of 7,150-7,355.

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