- USDTHB : moving in the range 33.81 – 33.90 this morning
- SET Index: 1,588.2 (-0.23%), 03 Dec 2021
- S&P 500 Index: 4,591.7 (+1.17%), 06 Dec 2021
- Thai 10-year government bond yield (interpolated) : 1.90% (+0.00 bps), 03 Dec 2021
- US 10-year treasury yield: 1.43% (+8.00bps), 06 Dec 2021
- U.S. House could vote to hike debt limit this week, senior Democrat says
- China frees up $188 billion for banks in second reserve ratio cut this year
- BoE's Broadbent sees inflation above 5%, price pressure from jobs market
- Dollar up against safe havens as risk sentiment improves on Omicron news
U.S. House could vote to hike debt limit this week, senior Democrat says
The U.S. House of Representatives could vote this week to raise the federal government's $28.9 trillion debt limit, the chamber's No. 2 Democrat told, without providing details on how such an effort might unfold. Treasury Secretary Janet Yellen has urged Congress to act by Dec. 15 and a bipartisan think tank warned last week the U.S. government could run out of ways to cover its obligations by late this month. Top Republicans have been calling on President Joe Biden's Democrats to hike the debt limit without Republican votes, using a process known as reconciliation. But Democratic leaders in the House and Senate were searching for a way to win passage. Senate Republicans also expressed optimism that Senate Majority Leader Chuck Schumer and his Republican counterpart, Mitch McConnell, would soon work out a debt ceiling agreement.
China frees up $188 billion for banks in second reserve ratio cut this year
China's central bank said on Monday it would cut the amount of cash that banks must hold in reserve, its second such move this year, releasing 1.2 trillion yuan ($188 billion) in long-term liquidity to bolster slowing economic growth. The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for banks by 50 basis points (bps), effective from Dec. 15. The world's second-largest economy, which staged an impressive rebound from last year's pandemic slump, has lost momentum in recent months as it grapples with a slowing manufacturing sector, debt problems in the property market and persistent COVID-19 outbreaks. Some analysts believe growth could slow further in the fourth quarter from the third quarter's 4.9%, although the full-year growth could still be around 8%.
BoE's Broadbent sees inflation above 5%, price pressure from jobs market
Bank of England Deputy Governor Ben Broadbent said on Monday that inflation in Britain might "comfortably exceed" 5% in April and that the country's tight labour market risked becoming a more persistent source of inflation. Speaking to Leeds University Business School, Broadbent suggested that forecast would probably have to be raised further above the central bank's 2% target. Asked about the Omicron variant of COVID-19 and how it would affect his vote on interest rates next week, Broadbent said he had not decided how he would vote, and that his decision would not be driven by a single factor. Although unemployment is higher than before the pandemic, the jobs market could still prove a source of inflation, especially as the end of the furlough programme in September did not appear to have made hiring easier for employers.
Dollar up against safe havens as risk sentiment improves on Omicron news
The 10-year government bond yield (interpolated) on the previous trading day was 1.90, +0.00 bps. The benchmark government bond yield (LB31DA, 10.0 years) was 1.91, -1.00 bps. LB31DA could be between 1.88-1.95. Meantime, the latest closed US 10-year bond yields was 1.43%, +8.00bps. USDTHB on the previous trading day closed around 33.88 Moving in a range from 33.81-33.90 this morning. USDTHB could be closed between 33.83-33.93 today. Meantime, The dollar edged higher against safe-haven currencies such as the yen and Swiss franc after reassuring news on the Omicron COVID-19 variant, while units like the Australian dollar that had weakened in recent weeks on growth worries also advanced.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
