- USDTHB: moving in the range 36.19-36.345 this morning supportive level at 36.15 resistance level at 36.45
· SET Index: 1,507.4 (-1.01%), 25 Sep 2023
· S&P 500 Index: 4,337.4 (+0.17%), 25 Sep 2023
· Thai 10-year government bond yield (interpolated): 3.24 (+4.56 bps), 25 Sep 2023
· US 10-year treasury yield: 4.55 (+11.00 bps), 25 Sep 2023
- US yields revisit highs, Asia stocks sag on hawkish Fed angst
- ECB Maintains High Interest Rates to Combat Inflation Amid Economic Slowdown
- Singapore CPI inflation eases slightly in August, core inflation down
- US Dollar Peaks Amid Inflation Concerns; Stocks Remain Steady
US yields revisit highs, Asia stocks sag on hawkish Fed angst US Treasury yields scaled a fresh 16-year peak on Tuesday, underpinning the dollar near a 10-month summit, as investors responded to the message from the Federal Reserve and other major central banks of rates staying elevated for longer. Asia-Pacific stock benchmarks sagged along with gold, while crude oil continued to drift back from 10-month highs. The yield on 10-year Treasury notes rose to 4.552%, a level not seen since October 2007. Traders now put the odds of another quarter-point Fed hike by January at a coin toss and have pushed the likely start of rate cuts to summer. The Fed surprised markets last week by suggesting more tightening may be in the pipeline, and projected high rates to stay in place for longer than investors had anticipated.
ECB Maintains High Interest Rates to Combat Inflation Amid Economic Slowdown The European Central Bank (ECB) is determined to keep interest rates high enough to restrict business activity "as long as necessary" to counter inflation, according to the bank's president, Christine Lagarde. Speaking on Monday, she noted that the upward pressure on prices remains robust in the eurozone due to factors such as strong spending on holidays and travel and increasing wages. Annual inflation in the eurozone decreased slightly from 5.2% in July to 5.3% in August. Despite this slight drop, Lagarde emphasized that inflation is still expected to remain too high for too long. She reiterated the ECB's commitment to bringing inflation back to its 2% medium-term target promptly. In response to the persistent inflation, the ECB recently increased its benchmark deposit rate to an all-time high of 4%, up from -0.5% in July 2022.
Singapore CPI inflation eases slightly in August, core inflation down Singapore consumer price index inflation eased slightly in August, aided by softer services and food prices, although increased fuel prices still kept inflation underpinned. Singapore CPI rose 4% in the 12 months to August, as expected, compared to a 4.1% increase in the prior month, data from the Monetary Authority of Singapore (MAS) showed. Excluding volatile items such as accommodation and private transport expenses, core CPI inflation grew 3.40% in August, slightly missing expectations of 3.5%, and falling from the 3.8% recorded in July. The softer inflation reading was spurred by easing global supply chain issues, which saw the cost of food and consumer good imports decrease through the month.
US Dollar Peaks Amid Inflation Concerns; Stocks Remain Steady The 10-year government bond yield (interpolated) on the previous trading day was 3.24, +4.56 bps. The benchmark government bond yield (LB31DA) was 3.21, +4.00 bps. Meantime, the latest closed US 10-year bond yields was 4.55, +11.00 bps. USDTHB on the previous trading day closed around 36.03. Moving in a range of 36.19-36.345 this morning. USDTHB could be closed between 36.15-36.45 today. the U.S. Dollar reach its highest level since March, as investors sought safer options amidst speculation that central banks would maintain high interest rates to curb inflation. This development coincided with a decline in U.S. government bonds, while stocks remained steady. The S&P 500 and the Nasdaq 100, heavily influenced by technology companies, showed little change following the worst weekly drop on Wall Street since March. Netflix Inc. saw a rise of 0.8% after reaching a preliminary labor agreement with Hollywood screenwriters. In contrast, Foot Locker Inc. and Nike Inc. experienced a slump following a downgrade from Jefferies analysts due to anticipated consumer challenges. A surge in the yield on the U.S. Treasury 10-year note by nine basis points marked a high of 4.53%, a level unseen since 2007. Concurrently, Bloomberg’s Dollar Spot Index increased for the fourth day in a row, nearing its highest point this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
