- USDTHB : moving in the range 32.20 – 32.29 this morning, THB largely appreciated against USD as large foreign inflow into Thai bond and stock market. Though, Fed hike may likely drive USDTHB up in medium term, supporting level of USDTHB is around 32.20, resistance level is around 32.85, 32.60
- SET Index: 1,701.5 (+0.99%), 15 Feb 2022
- S&P 500 Index: 4,475.0 (+0.09%), 16 Feb 2022
- Thai 10-year government bond yield (interpolated) : 2.21% (+1.00 bps), 15 Feb 2022
- US 10-year treasury yield: 2.03 (-2.00bps), 16 Feb 2022
- Fed Members Back Faster Rate Hikes, 'Significant' Balance Sheet Reduction: Minutes
- BOJ's Kuroda says no plan to change long-term yield cap - for now
- IMF sees inflation as 'significant risk,' but eyes gradual moderation in rising prices
- Dollar falls as investors see Fed minutes as less hawkish than feared
Fed Members Back Faster Rate Hikes, 'Significant' Balance Sheet Reduction: Minutes
Federal Reserve officials were in favor of reining in accommodative monetary policy measures with a faster pace of rate increases and a "significant" reduction in the size of balance sheet that could begin later this year, the Fed’s January meeting minutes showed Wednesday. The faster pace of rate hikes, however, is conditional on whether the pace of inflation continues to trend above target or eventually dissipates. The odds of a 50 basis point rate hike at the Fed's meeting has eased slightly to about 50%, 25% last week, according to Investing.com’s the Fed rate monitor tool. “I’d like to see 100 basis points in the bag by July 1,” James Bullard said in an interview with Bloomberg. “I was already more hawkish but I have pulled up dramatically what I think the committee should do."
BOJ's Kuroda says no plan to change long-term yield cap - for now
The Bank of Japan has no plan now to change an implicit 0.25% cap set around its yield target, though a tweak in the future cannot be ruled out, governor Haruhiko Kuroda said on Wednesday. Under yield curve control, the BOJ guides the 10-year Japanese government bond (JGB) yield around 0 - 0.25% as part of efforts to keep borrowing costs low and stimulate the economy. "We have no plan now to change the band. But that's not to say the band cannot change forever," Kuroda told parliament. Kuroda also said the yield curve needs to steepen "to a certain extent," suggesting the BOJ will not intervene to forcefully push down longer-dated yields such as those for 20- and 30-year notes. The remarks underscores the tricky balance the BOJ faces in keeping borrowing costs low, while seeking to mitigate the strain prolonged ultra-low rates is inflicting on bank profits.
IMF sees inflation as 'significant risk,' but eyes gradual moderation in rising prices
Headline inflation has moved above central bank targets in most Group of 20 economies despite weaker growth momentum and remains a "significant risk," but rising prices should moderate gradually in most economies this year, the IMF said Wednesday. But longer-term inflation expectations remained generally well-anchored in economies with strong policy frameworks. The IMF said downside risks continued to dominate and economic indicators released after it downgraded its forecast for global growth by half a percentage point to 4.4% in January pointed to "weak growth momentum." IMF staff estimated that supply disruptions had likely subtracted between 0.5 and 1 percentage point from 2021 and lifted core inflation by 1 percentage point, the IMF said.
Dollar falls as investors see Fed minutes as less hawkish than feared
The 10-year government bond yield (interpolated) on the previous trading day was 2.21, +1.00 bps. The benchmark government bond yield (LB31DA) was 2.19, +2.00 bps. LB31DA could be between 2.17-2.22. Meantime, the latest closed US 10-year bond yields was 2.03%, -2.00bps. USDTHB on the previous trading day closed around 32.35 Moving in a range from 32.20-32.29 this morning. USDTHB could be closed between 32.15-32.25 today. Meantime, The U.S. dollar index was down on Wednesday, hitting its lowest level since Friday after minutes from the last U.S. Federal Reserve meeting suggested policymakers are not set on a particular pace of interest rate hikes.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
