- USDTHB : moving in the range 33.60 – 33.70 this morning, supporting level of USDTHB is around 33.50 resistance level is around 33.70,34.00
- SET Index: 1,673.9 (-0.28%), 21 Mar 2022
- S&P 500 Index: 4,461.2 (-0.04%), 21 Mar 2022
- Thai 10-year government bond yield (interpolated) : 2.33% (+2.00 bps), 21 Mar 2022
- US 10-year treasury yield: 2.32 (+18.00bps), 21 Mar 2022
- Fed’s chair delivered hawkish stance to fight against inflation
- Crude up 7% as Europe Said to Mull U.S.-like Ban on Russian Oil
- BOJ's Kuroda renews powerful easing pledge in wake of hawkish Fed signal
- Yield spiked after Powell hawkish comments
Fed’s chair delivered hawkish stance to fight against inflation
Federal Reserve Chair Jerome Powell on Monday delivered his most muscular message to date on his battle with too-high inflation, saying the central bank must move "expeditiously" to raise rates and possibly "more aggressively" to keep an upward price spiral from getting entrenched. In remarks that sent financial markets scrambling to recalibrate for a higher probability of the Fed lifting interest rates by a half-percentage point at one or more of its remaining meetings this year, Powell signaled an urgency to the central bank's inflation challenge that was less visible than just a week ago, when the Fed delivered its first rate hike in three years.
Crude up 7% as Europe Said to Mull U.S.-like Ban on Russian Oil
Crude futures rose more than 7% in Monday’s London and New York trading as major European nations considered joining the U.S. ban on Russian oil, sending new alarm bells clanging around the energy sector. Reports over the weekend of Yemen’s Houthi rebels unleashing a barrage of drone and missile attacks on Saudi Arabia, targeting a liquefied natural gas plant, water desalination plant, oil facility and power station added to the upward pressure on oil. The combined three-day run-up of about 15% in U.S. crude and Brent halved the initial drop of almost 30% in the two benchmarks since they fell from March 7 highs of above $130 for a barrel.
BOJ's Kuroda renews powerful easing pledge in wake of hawkish Fed signal
The Bank of Japan must maintain ultra-loose monetary policy as recent cost-push inflation could hurt the economy, Governor Haruhiko Kuroda said on Tuesday, highlighting the widening gap with the U.S. Federal Reserve's aggressive tightening plan. Kuroda said consumer inflation is expected to accelerate as some firms pass on rising energy and food costs to households. The yen fell through the psychological 120 level against the dollar for the first time since 2016 on Tuesday, after Powell's hawkish remarks raised bets on higher U.S. rates and widened the policy gap between the Fed and a dovish BOJ.
Yield spiked after Powell hawkish comments
The 10-year government bond yield (interpolated) on the previous trading day was 2.33, +2.00 bps. The benchmark government bond yield (LB31DA) was 2.35, +4.00 bps. LB31DA could be between 2.30-2.38. Meantime, the latest closed US 10-year bond yields was 2.32%, +18.00bps. USDTHB on the previous trading day closed around 33.46 Moving in a range from 33.60-33.70 this morning. USDTHB could be closed between 33.60-33.80 today. Yields spiked on Monday with the 10-year benchmark note up to a yield of 2.298% from 2.153% on Friday - the highest since May 2019. Yields of two-year Treasuries, which more closely reflect monetary policy expectations, jumped to 2.111% from 1.942% on Friday. Fed funds futures now imply a 60.7% chance of a 50 basis-point hike in key interest rates at the Fed's next meeting in May, up from 52% before the text of Powell's speech was released.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
