- USDTHB : moving in the range 32.65 – 32.76 this morning, USDTHB at 32.60 level might be possible long entry. Hawkish Fed may likely continue to drive USDTHB in medium term, supporting level of USDTHB is around 32.60 resistance level is around 32.85, 33.00
- SET Index: 1,703.0 (-0.01%), 10 Feb 2022
- S&P 500 Index: 4,504.1 (-1.83%), 10 Feb 2022
- Thai 10-year government bond yield (interpolated) : 2.19% (-1.00 bps), 10 Feb 2022
- US 10-year treasury yield: 2.03 (+11.00bps), 10 Feb 2022
- Fed's Barkin: 'I'd have to be convinced' of need for half-point rate hike
- S.Korea says central bank may buy more govt bonds to calm bond markets
- Australia's central bank sees risks in hiking rates too early
- Rate hike bets keep U.S. dollar bid
Fed's Barkin: 'I'd have to be convinced' of need for half-point rate hike
Fed Barkin on Thursday said he would be "conceptually" open to raising interest rates by a bigger-than-usual half-of-a-percentage point increment, but does not see a need for it now. Traders on Thursday newly priced in such a rate hike after a a government report showed consumer prices rising at a nearly 40-year high and St. Louis Fed President James Bullard said he had become dramatically more hawkish and now wants rates to rise a full percentage point by July 1. Barkin said he expects the Fed to move interest rates up "steadily" towards neutral and wants to bring interest rates back to pre-pandemic levels "relatively soon", adding that as far as the pace and scope of raising rates and reducing the Fed's balance sheet, policymaker decisions will depend on the economic data.
S.Korea says central bank may buy more govt bonds to calm bond markets
South Korea's central bank and finance ministry said on Friday they agreed the Bank of Korea will need to buy more government bonds if needed to stabilise the local bond market. The Bank of Korea, the finance ministry and regulators held a meeting on Friday to discuss recent surge in government bond yields as well as consumer price pressures at a time when interest rates are set to rise further, a statement from the bank and the ministry showed. The BOK said on Feb. 4 it will buy 2 trillion won ($1.67 billion) of government bonds.
Australia's central bank sees risks in hiking rates too early
Australia's top central banker is confident the economy will recover strongly from any weakness caused by a recent surge in coronavirus cases, but sees risks in moving too early to raise interest rates. Speaking on Friday before a parliamentary economics committee, Reserve Bank of Australia (RBA) Governor Philip Lowe said there was a chance to get unemployment under 4% for the first time in 50 years and it was worth risking a period of higher inflation. The economy hit a speed bump in January as the rapid spread of the Omicron variant curbed consumer mobility, though spending has since recovered as cases levelled off. The labour market remains tight with unemployment at a 13-year low of 4.2% and vacancies at record highs. Wage growth has picked up somewhat to 2.2% but is still running at less than half the pace of the United States or Britain, and policy makers would prefer to see it up at 3.0% or more before withdrawing stimulus.
Rate hike bets keep U.S. dollar bid
The 10-year government bond yield (interpolated) on the previous trading day was 2.19, -1.00 bps. The benchmark government bond yield (LB31DA) was 2.17, -1.00 bps. LB31DA could be between 2.15-2.22. Meantime, the latest closed US 10-year bond yields was 2.03%, +11.00bps. USDTHB on the previous trading day closed around 32.63 Moving in a range from 32.65-32.76 this morning. USDTHB could be closed between 32.65-32.75 today. Meantime, The dollar was firm in Asia on Friday after hotter-than-expected U.S. inflation and hawkish comments from a Federal Reserve official unleashed a wave of bets on aggressive rate hikes, though similar pressures worldwide kept a lid on gains.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
