- USDTHB: moving in the range 37.65-37.77 this morning, supportive level at 37.50 resistance level at 38.00
· SET Index: 1,596.5 (-0.26%), 26 Oct 2022
· S&P 500 Index: 3,830.6 (-0.74%), 26 Oct 2022
· Thai 10-year government bond yield (interpolated): 3.25 (-4.24 bps), 26 Oct 2022
· US 10-year treasury yield: 4.04 (-6.0 bps), 26 Oct 2022
- US mortgage rates top 7% for first time in two decades
- Japan’s extra budget for stimulus package to exceed $198 billion
- South Korea Q3 GDP hits 1-year low, slightly above expectations
- Dollar sells off on speculation of less hawkish Fed, euro regains parity
US mortgage rates top 7% for first time in two decades Benchmark U.S. mortgage rates surged again last week to hit their highest level since 2001, cranking up the pressure on a housing market that is already slowing sharply. The Mortgage Bankers Association's 30-year reference rate jumped 22 basis points to 7.16%, amid ongoing concerns that the Federal Reserve will keep raising interest rates into next year as it tries to bring down rampant inflation. The MBA 30-year rate has now risen by 170 basis points in the last two months alone as inflation has continued to surprise to the upside. That is having an increasingly dire effect on the housing market, where mortgage applications fell another 1.7%, their 10th decline in the last 11 weeks.
Japan’s extra budget for stimulus package to exceed $198 billion Japan’s upcoming economic stimulus package is expected to include an extra budget of more than 29 trillion yen ($198 billion), far exceeding a previous estimate, national broadcaster NHK reported on Thursday. Only a day earlier, Japanese media had reported the government was set to spend about 25 trillion yen on the stimulus package, aimed at easing the pain from rising energy and other living costs. Japan’s public debt is already the biggest among major economies at twice the size of its economy. The extra spending, which is likely to be finalized on Friday, is expected to be partially funded by additional debt issuance, raising concerns over Japan’s fiscal discipline.
South Korea Q3 GDP hits 1-year low, slightly above expectations South Korea’s economy barely expanded in the third quarter, data showed on Thursday, as a mix of rising interest rates, elevated inflation and slowing exports ground economic activity to a halt this year. Third quarter gross domestic product (GDP) rose 0.3% from the prior quarter, data from Statistics Korea showed, slightly above expectations of 0.1%, but much below last quarter’s reading of 0.7%. Growth was at its weakest level since the third quarter of 2021. On an annualized basis, GDP rose 3.1%, more than expectations of 2.8% and last quarter’s reading of 2.9%. The reading highlights the slew of headwinds faced by the South Korean economy this year, as disruptions in global markets exacerbated the impact of rising inflation and interest rates.
Dollar sells off on speculation of less hawkish Fed, euro regains parity The 10-year government bond yield (interpolated) on the previous trading day was 3.25, -4.24 bps. The benchmark government bond yield (LB31DA) was 3.245, -11.00 bps. LB31DA could be between 3.10-3.50. Meantime, the latest closed US 10-year bond yields was 4.04, -6.00 bps. USDTHB on the previous trading day closed around 37.92 Moving in a range of 37.65-37.77 this morning. USDTHB could be closed between 37.85-38.40 today. The U.S. dollar sank more than 1% against a basket of peers on Wednesday as weakening economic data firmed views that the Federal Reserve will slow the pace of its rate hiking cycle, sending the euro back above parity with the greenback for the first time in a month. The aggressive pace of Fed tightening this year, aimed at taming stubbornly high inflation, has turbo-charged the dollar. Traders and economists predict a fourth-straight 75 basis-point interest rate increase next Wednesday, but there is growing speculation that the central bank will slow to half a point in December.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
