- USDTHB: moving in the range 34.71-34.79 this morning, supportive level at 34.60 resistance level at 34.90
· SET Index: 1,612.6 (-0.45%), 2 March 2023
· S&P 500 Index: 3,981.4 (+0.76%), 2 March 2023
· Thai 10-year government bond yield (interpolated): 2.61 (+3.17 bps), 2 March 2023
· US 10-year treasury yield: 4.08 (+7.00 bps), 2 March 2023
- US labor market stays resilient, initial jobless claims fell to 190k
- US manufacturing PMI continued to contract, but set to improve
- Euro zone inflation softens to 8.5% in February
- Thailand’s export fell for the fourth consecutive month in January
- 2-year US Treasury yield reaches highest in more than a decade
US labor market stays resilient, initial jobless claims fell to 190k According to Labor Department data released on Thursday, the number of Americans filing first-time unemployment claims fell by 2,000 compared to last week to 190,000. The figure was lower than estimates of 195,000. The number of Americans filing new claims for unemployment benefits fell again last week, pointing to sustained labor market strength and adding to financial market fears that the Federal Reserve could keep hiking interest rates for longer.
US manufacturing PMI continued to contract, but set to improve The Institute of Supply Management (ISM) reported that the economic activity in the US manufacturing sector continued to contract in February, albeit at a softer pace than in January, with the ISM Manufacturing PMI edging higher to 47.7 from 47.4. Underlying details of the report revealed that the Employment Index declined to 49.1 from 50.6 and the Prices Paid Index climbed to 51.3 from 44.5. Finally, the New Orders Index recovered to 47 from 42.5.
Euro zone inflation softens to 8.5% in February According to the preliminary estimate of Eurostat, the consumer price inflation in the Euro Area inched lower to 8.5% in February 2023, the lowest since last May, but above market expectations of 8.2%. The latest data added to signs that inflationary pressure remained high in Europe. Energy inflation slowed to 13.7% from 18.9% in January, while prices rose at a faster pace for food, non-energy industrial goods and services. Meanwhile, the core inflation, which excludes volatile items such as energy and food, rose to a fresh record high of 5.6% in February.
Thailand’s export fell for the fourth consecutive month in January Thailand custom-based export data showed that the export in January 2023 contracted 4.5% compared the year earlier or USD 20.25 bn, better than December’s 14.6%yoy slump, but worse than market expectation of a fall 1% amid the global economic slowdown and the baht volatility. Exports of major products decreased, particularly in computers, equipment, and parts, rubber products, jewelry (excluding gold), plastic pellets, and chemical products. In terms of market destination, export to primary and secondary markets declined 5.3%yoy and 3.1%yoy, respectively. On the other hand, imports increased by 5.5%yoy because of an increase of fuel-oil related and vehicle-related products, resulting in a trade deficit of USD 4.6 bn.
2-year US Treasury yield reaches highest in more than a decade The 10-year government bond yield (interpolated) on the previous trading day was 2.61, +3.17 bps. The benchmark government bond yield (LB31DA) was 2.59, +5.00 bps. LB31DA could be between 2.55-2.65. Meantime, the latest closed US 10-year bond yields was 4.08, +7.00 bps. USDTHB on the previous trading day closed around 34.80 Moving in a range of 34.71-34.79 this morning. USDTHB could be closed between 34.60-34.90 today. The yield on the benchmark 10-year US Treasury was up to 4.066%. The 2-year Treasury yield was last trading at 4.889%. Earlier in the session, it traded at its highest level since July 2007. Yields and prices have an inverted relationship and one basis point equals 0.01%. The Dollar Index, rose another 0.6% to 105.02. A surge in labor costs and a pullback in jobless claims reported early Thursday, point to the likelihood that the Fed will raise its benchmark interest rate another 0.25 pp later this month.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
