The rates market is in a nervous phase ahead of the release of the US Consumer Price Index (CPI). The CPI has not yet been released, and depending on movements in dollar-yen and long-term interest rates after the release, the relative performance of high-P/E growth stocks and high-dividend and value stocks could change.
The market forecasts a 0.2% month-on-month increase in US CPI and a 0.2% increase in core CPI. As the data has not yet been released, the results have not been confirmed, and a decision to leave rates unchanged may not be reached. The year-on-year increase is expected to be 3.5% and is seen as unchanged, but the market remains in a wait-and-see position pending the official release.
Depending on movements in dollar-yen and long-term interest rates after the release, interest-rate volatility could become a focus in the equity market, potentially changing the supply-demand balance between sectors.
At present, it is considered uncertain which stocks will be affected, and attention is focused on the market reaction to the forthcoming release.