- USDTHB : moving in the range 33.40 – 33.50 this morning, supporting level of USDTHB is around 33.30 resistance level is around 33.70
- SET Index: 1,677.9 (+0.24%), 22 Mar 2022
- S&P 500 Index: 4,511.6 (+1.12%), 22 Mar 2022
- Thai 10-year government bond yield (interpolated) : 2.37% (+4.00 bps), 22 Mar 2022
- US 10-year treasury yield: 2.38 (+6.00bps), 22 Mar 2022
- Fed policymakers call for bigger rate hikes to fight inflation
- Global bonds face the worst drawdown on record from peaked
- Oil edges lower as EU looks less likely to ban Russian oil
- Dollar slips as Powell boost fades
Fed policymakers call for bigger rate hikes to fight inflation
Federal Reserve officials are helping shape market expectations for sharper interest-rate hikes to curb the surge in inflation, but have not managed to dispel fears the tightening cycle could blow a hole in the economy and labor market. "The Fed needs to move aggressively to keep inflation under control," St. Louis Fed President James Bullard said, calling for the central bank to raise its benchmark overnight interest rate to 3% this year. Bullard dissented last week as the rest of his colleagues agreed to raise the federal funds rate by just a quarter of a percentage point from the near-zero level it had been since March 2020.
Global bonds face the worst drawdown on record from peaked
The Bloomberg Global Aggregate Index, a benchmark for government and corporate debt, has fallen 11% from a high in early 2021. That’s the biggest decline from a peak in data stretching back to 1990, surpassing a 10.8% drawdown during the financial crisis in 2008. The Fed raised interest rates by 25 basis points last week, and Chair Jerome Powell said this week it is prepared to increase them by a half percentage-point at its next meeting if needed. Higher borrowing costs risk further dampening the return on debt, eroded by the fastest pace of consumer-price increases in decades. Corporate bonds are particularly vulnerable to mounting stagflation threats, as slowing economic growth also raises credit risks.
Oil edges lower as EU looks less likely to ban Russian oil
Oil edged lower on Tuesday after it looked unlikely that European Union nations would agree to join the United States in a Russian oil embargo in retaliation for its invasion of Ukraine. EU foreign ministers were split on the ban as some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. The oil market will watch the latest round of weekly U.S. inventory data for clearer direction. Analysts expect crude oil inventories to rise slightly.
Dollar slips as Powell boost fades
The 10-year government bond yield (interpolated) on the previous trading day was 2.37, +4.00 bps. The benchmark government bond yield (LB31DA) was 2.36, +1.00 bps. LB31DA could be between 2.30-2.38. Meantime, the latest closed US 10-year bond yields was 2.36%, +6.00bps. USDTHB on the previous trading day closed around 33.63 Moving in a range from 33.40-33.50 this morning. USDTHB could be closed between 33.30-33.70 today. The dollar edged lower on Tuesday as a boost from comments by U.S. Federal Reserve Chair Jerome Powell that boosted the greenback on the previous day faded and a rise in equities markets help boost risk-on sentiment. The greenback saw its biggest one-day percentage gain since March 10 on Monday, as Powell opened the door for raising interest rates by more than 25 basis points at upcoming policy meetings in order to combat inflation.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
