- SET Index: 1,478.1 (+0.75%), 1 Feb 2020
- S&P 500 Index: 3773.9 (+1.59%), 1 Feb 2020
- Thai 10-year government bond yield: 1.205 (+1.50 bps), 1 Feb 2020
- US 10-year treasury yield: 1.09% (-2.00 bps), 1 Feb 2020
- Fed officials say U.S. economy still in depths of recession, more relief needed
- U.S. Treasury slashes first-quarter borrowing estimate due to higher cash balance
- Euro zone inflation less than meets the eye in lockdowns – ECB
- Dollar hovers near seven-week high after boost from euro selloff
Fed officials say U.S. economy still in depths of recession, more relief needed
The U.S. economy is still deep in a recession and more fiscal relief will be needed to reach a full recovery and help some of the unemployed find jobs, two Federal Reserve policymakers said on Monday. Still, more work is needed to help the millions of people who lost jobs during the pandemic, and the pace of the recovery will depend on what happens with the coronavirus and the steps employers take to restructure jobs after the crisis, Rosengren said. "There are still many sectors and many communities where recovery is going to be a long way off," Bostic said. Fed officials pledged at last week's policy-setting meeting to continue supporting the economy by keeping interest rates at near-zero levels and purchasing $120 billion a month in bonds.
U.S. Treasury slashes first-quarter borrowing estimate due to higher cash balance
The U.S. Treasury plans to borrow $274 billion in the first quarter, significantly lower than the November estimate of $1.127 trillion, with the decline due to the department's higher cash balance at the beginning of January. The Treasury last year increased its borrowing projections to account for an estimated $1 trillion in fiscal spending. A $900 billion stimulus bill was not signed into law until Dec. 27, however, leaving the Treasury with a larger than anticipated cash balance of $1.729 trillion at the end of 2020. Current borrowing projections do not account for any new fiscal spending.
Euro zone inflation less than meets the eye in lockdowns – ECB
Inflation in the euro zone was likely kept higher by temporary factors during the lockdowns last year as some goods became hard to come by and hesitant entrepreneurs put off cutting prices. It is concluded that it was important for ECB policymakers to filter out these and other factors related to the supply of goods and services to focus on how the pandemic was depressing demand, underpinning the need for stimulus. Euro zone inflation slowed sharply in March but prices only began falling in August. They remained negative through the end of the year before likely rebounding in January as some tax cuts expired.
Dollar hovers near seven-week high after boost from euro selloff
The benchmark government bond yield (LB29DA, 9.0 years) on the previous trading day was 1.205, +1.50 bps. Thai benchmark government bond yield (LB29DA, 9.0 years) could be between 1.18-1.22. Meantime, the latest closed US 10-year bond yields was 1.09%, -2.00bps. USDTHB on the previous trading day closed around 29.965 Moving in a range from 29.95-30.00 this morning. USDTHB could be between 29.92-30.00 today. Meantime, The dollar hovered near a seven-week high on Tuesday, largely benefiting from a euro selloff.
Sources : Bloomberg, CNBC, Investing, CEIC
