Market participants are again watching fears of rising inflation in the United States (US) and triggering speculation that the Fed will reduce the rate of bond purchases in the market. The US Consumer Price Index (CPI) in April rose 4.2% YoY, or exceeded the Dow Jones survey result of 3.6%. To be more detailed, March’s figure grew by 0.8% MoM, or much higher than the survey’s 0.2%. A number of investors view the annual increase in inflation to be the highest since 2008. Meanwhile, the absence of an auction for Government Securities (SUN) this week has held back the rate of decline in prices on the secondary market. The yield on the 10-year benchmark series SUN FR0087 is at the level of 6.43%, or record the yield inversion with the 15-year benchmark FR0088 which is at the level of 6.29%.
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