The Fed’s hawkish stance ineffective, and inflation still high. The US CPI MoM increased 1.0% (Vs. Apr. 0.3% MoM), even after the 50 bps increase to FFR at the beginning of May. Concerns about the ineffectiveness of the Fed’s Hawkish stance also led to yields on UST10Y and GIDN10Y to be traded above the psychological 3% and 7% levels, respectively. Meanwhile, inflation will remain high, as the price of Brent crude oil penetrated USD 120/barrel again, potentially revising the inflation outlook and increasing the FFR more aggressively. JCI closed at 7,086, or weakened 1.3% for the week.

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