- USDTHB: moving in the range 34.13-34.18 this morning supportive level at 34.00 resistance level at 34.30
- SET Index: 1,394.7 (+0.56%), 24 Dec 2024
- S&P 500 Index: 6,040.0 (+1.10%), 24 Dec 2024
- Thai 10-year government bond yield (interpolated): 2.266 (+0.49 bps), 24 Dec 2024
- US 10-year treasury yield: 4.59 (+0.0 bps), 24 Dec 2024
- October minutes reveal BOJ's debate on caution in rate hikes
- China considers issuing record $411 billion in special bonds, according to Reuters
- Thai Cabinet approves handouts, wage hikes, and tax breaks
- Thai Cabinet endorses 1%-3% inflation target for 2025
- The dollar inched up on Tuesday amid light trading during the holiday period
October minutes reveal BOJ's debate on caution in rate hikes
In the minutes from the Bank of Japan's October meeting, several members stressed the need to assess the impact of previous rate hikes on the economy and inflation before deciding on future policy. One member called for caution in timing the next hike, while others agreed that rates would rise if the economy and inflation met forecasts. Some members suggested gradual hikes if inflation accelerated, though one noted that market rates might be lower than expected based on the BoJ's projections. A member also highlighted uncertainty about Japan's neutral rate and monetary policy transmission, making it hard to predict the BoJ's long-term rate path.
China considers issuing record $411 billion in special bonds, according to Reuters
Reuters reports that China’s policymakers intend to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025 to support the slowing economy. This represents a significant increase from this year's 1 trillion yuan, with funds aimed at boosting consumption, investment, and recapitalizing major state banks. The fiscal measures are part of China's economic planning for next year, with top leaders suggesting more aggressive stimulus as Beijing faces potential tariff threats from the incoming Trump administration. Policymakers have committed to widening the fiscal deficit and increasing bond sales to strengthen fiscal policy and stimulate consumption.
Thai Cabinet approves handouts, wage hikes, and tax breaks
On Tuesday, Thailand's cabinet approved new measures, including minimum wage increases starting in January, tax breaks to encourage spending, and the second phase of the government’s signature handout program. The government aims to raise the national daily minimum wage to 400 baht ($11.72) to boost the economy. However, the wage committee decided on a 2.9% increase, raising the minimum wage to between 337 baht and 400 baht ($9.9 to $11.7), depending on the region, effective January 1. The government will also offer tax deductions of up to 50,000 baht for verified spending, excluding domestic travel, between January 16 and February 28. They also approved the second phase of the 40-billion-baht handout scheme for four million elderly people, with payments to be made by January.
Thai Cabinet endorses 1%-3% inflation target for 2025
Thailand’s cabinet approved a deal to maintain the official inflation target range of 1% to 3% in 2025, continuing for the fifth year. This agreement between the central bank and Ministry of Finance comes despite inflation often falling short due to high household debt.
The dollar inched up on Tuesday amid light trading during the holiday period
The 10-year government bond yield (interpolated) on the previous trading day was 2.266, +0.49 bps. The benchmark government bond yield (LB346A) was 2.23, +1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.59, +0.00 bps. USDTHB on the previous trading day closed around 34.19, moving in a range of 34.13 – 34.18 this morning. USDTHB could be closed between 34.00 – 34.30 today. The US Dollar is modestly up on Tuesday, with the Index just above 108.00, as markets wind down for the holidays. Despite reports of China considering selling nearly 3 trillion yuan in special treasury bonds in 2025, the Greenback has shown little movement. The euro is range-bound around 1.0400 due to low trading volumes. The Japanese Yen has been strengthening but saw some correction during the North American session. Comments from Finance Minister Kato pushed USD/JPY below 157.00, before it rose overnight.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
