- USDTHB: moving in the range 34.58-34.71 this morning supportive level at 34.50 resistance level at 34.70
· SET Index: 1,551.4 (-0.24%), 12 Jun 2023
· S&P 500 Index: 4,338.9 (+0.93%), 12 Jun 2023
· Thai 10-year government bond yield (interpolated): 2.58 (+0.10 bps), 12 Jun 2023
· US 10-year treasury yield: 3.73 (-2.00 bps), 12 Jun 2023
- US budget deficit mushrooms in May as revenue falls, Medicare outlays jump
- Australian consumer sentiment near record lows in June
- China’s central bank cuts short-term borrowing cost for first time since Aug
- US dollar inches higher ahead of inflation data, Fed rate decision
US budget deficit mushrooms in May as revenue falls, Medicare outlays jump The U.S. budget deficit swelled in May from a year earlier as revenue tumbled and Medicare spending surged, the Treasury Department said on Monday in its first monthly accounting of the government's finances since a deal was reached to suspend the debt limit and avoid a first-ever federal default. The May deficit shot up to $240 billion from $66 billion a year earlier, more than offsetting the $176 billion surplus recorded in April. The median forecast among economists polled by Reuters was for a deficit of $236 billion. Revenues for May totaled $307 billion, down 21% from $389 billion a year earlier, with a decline in non-withheld individual income taxes and higher tax return payments accounting for most of the shortfall.
Australian consumer sentiment near record lows in June Australia’s consumer sentiment improved slightly in early-June, a private survey showed on Tuesday, but remained close to record lows amid pressure from rising interest rates and inflation. A big jump in the minimum wage over the past month somewhat helped improve sentiment after it tumbled to COVID-era lows in May. The Westpac Consumer Sentiment index rose 0.2% in June, slightly better than expectations for the index remaining unchanged after a 7.9% tumble in May. Westpac said that survey responses had been largely optimistic before the Reserve Bank of Australia’s rate hike on June 6, but had then soured after the hike.
China’s central bank cuts short-term borrowing cost for first time since Aug China’s central bank lowered a short-term lending rate for the first time in 10 months on Tuesday, in a bid to restore market confidence and prop up a stalling post-pandemic recovery in the world’s second-largest economy. Recent economic data has shown subdued demand and weaker investor sentiment, raising expectations that authorities will ease monetary policy to sustain growth. The People’s Bank of China (PBOC) cut its seven-day reverse repo rate by 10 basis points to 1.90% from 2.00% on Tuesday, when it injected 2 billion yuan ($279.97 million) through the short-term bond instrument.
US dollar inches higher ahead of inflation data, Fed rate decision The 10-year government bond yield (interpolated) on the previous trading day was 2.58, +0.10 bps. The benchmark government bond yield (LB31DA) was 2.58, -2.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.73, -2.00 bps. USDTHB on the previous trading day closed around 34.66 Moving in a range of 34.58-34.71 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar inched higher on Monday, trading in a narrow range as investors remained cautious ahead of several key policy decisions due this week, with the Federal Reserve expected to keep rates on hold for the first time since January 2022. Monetary policy meetings at the Fed, the European Central Bank (ECB) and the Bank of Japan (BOJ) will set this week's tone as markets seek clues from policymakers on the future path of interest rates. U.S. May inflation data is also out on Tuesday as the Fed kicks off its two-day meeting. Money markets are leaning toward a pause from the Fed, according to Refinitiv's FedWatch, but a majority expect a hike in the July meeting. Conversely, a clear majority of economists polled by Reuters expect the ECB to hike its key rate by 25 basis points on Thursday and again in July, before pausing for the rest of the year as inflation remains sticky.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
