- SET Index: 1,522.7 (+0.95%), 15 Feb 2020
- S&P 500 Index: 3,934.8 (+0.47%), 12 Feb 2020
- Thai 10-year government bond yield: 1.36 (+7.00 bps), 15 Feb 2020
- US 10-year treasury yield: 1.20% (+4.00 bps), 12 Feb 2020
- Euro zone mulls stimulus calibration when economy restarts after COVID
- BOJ's Kuroda says stock boom reflects economic optimism, defends ETF scheme
- Britain may need big tax rises, but not yet
- Dollar in doldrums as recovery optimism thrives
Euro zone mulls stimulus calibration when economy restarts after COVID
Euro zone finance ministers are holding initial talks on Monday on when and how the expected pick up in economic activity, and the lifting of pandemic lockdowns, should affect the amounts of cash governments now pump into the economy to keep it going. "The issue is how best combine to the commitment to short- term support with a credible medium-term fiscal strategy," one senior euro zone official said. "Now the measures are non-discriminatory. With time, more and more sectors approach normality, it will be time to wean off the corporate sector from public support. Different sectors will have different recovery dynamics," he said.
BOJ's Kuroda says stock boom reflects economic optimism, defends ETF scheme
Bank of Japan Governor Haruhiko Kuroda said on Tuesday the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose monetary policy was fuelling an asset price bubble. He stressed that it was premature to debate an exit from super-loose policy including the BOJ's huge purchases and holdings of exchange-traded funds (ETF) as It's likely to take significant time to achieve our price (inflation) target. The BOJ has unveiled a plan to review its policy tools, including its ETF-buying programme, in March to make it more sustainable as the pandemic forces it to maintain its stimulus for a prolonged period.
Britain may need big tax rises, but not yet
British finance minister Rishi Sunak might have to raise a hefty extra 60 billion pounds ($83 billion) in taxes to pay for the COVID-19 hit to the public finances, but his March 3 budget is too soon for such a move, a think tank said. The non-partisan Institute for Fiscal Studies said uncertainty about whether the pandemic would fade, or flare up again, meant Sunak should focus for now on targeted measures to prevent job losses and encourage business investment. An increase of 60 billion pounds a year in tax would be equivalent to a nine-pence-in-the pound leap in income tax rates. But any such revenue-raising shift would probably be spread across different taxes, the IFS said.
Dollar in doldrums as recovery optimism thrives
The benchmark government bond yield (LB29DA, 8.8 years) on the previous trading day was 1.36, +7.00 bps. Thai benchmark government bond yield (LB29DA) could be between 1.34-1.38. Meantime, the latest closed US 10-year bond yields was 1.20%, +4.00bps. USDTHB on the previous trading day closed around 29.88 Moving in a range from 29.84-29.89 this morning. USDTHB could be between 29.83-29.90 today. Meantime, The U.S. dollar was pinned down on Tuesday, as vaccine optimism boosted the British pound to an almost three-year high.
Sources : Bloomberg, CNBC, Investing, CEIC
