- SET Index: 1,511.0 (-0.26%), 18 Feb 2020
- S&P 500 Index: 3,914.0 (-0.44%), 18 Feb 2020
- Thai 10-year government bond yield: 1.40 (+0.00 bps), 18 Feb 2020
- US 10-year treasury yield: 1.29% (+0.00 bps), 18 Feb 2020
- Japan Services PMI Drops to 6-Month Low while Manufacturing PMI Rebounds above 50
- Yellen says U.S. will keep tariffs on China in place for now
- BOJ may replace some ETF guidelines with pledge to step in during crisis
- Dollar Set for Small Weekly Gain
Japan Services PMI Drops to 6-Month Low while Manufacturing PMI Rebounds above 50
The Japan Services PMI fell to 45.8 in February 2021 from a final 46.1 in January. This was the 13th straight month of contraction in the service sector and the lowest reading in six months, as businesses struggled to mitigate the impact from emergency measures taken to curb the spread of coronavirus in Tokyo and nine other prefectures. However, The Japan Manufacturing PMI increased to 50.6 in February 2021 from a final 49.8 a month earlier. This was the first expansion in factory activity since April 2019 and the fastest since December 2018, as the economy gradually recovered from the worst of COVID-19 shocks. Both output and new orders expanded. Meantime, employment expanded for the first time since February 2020.
Yellen says U.S. will keep tariffs on China in place for now
The United States will keep tariffs imposed on Chinese goods by the former Trump administration in place for now, but will evaluate how to proceed after a thorough review, Treasury Secretary Janet Yellen told CNBC on Thursday. The deal eased tensions between the world's two largest economies after a damaging trade war that U.S. experts estimate led to a peak loss of 245,000 U.S. jobs, but most of the tariffs remain in place on both sides. China pledged to buy $200 billion in additional U.S. goods and services over two years under the interim deal signed by Trump in January 2020, but Beijing fell 42% short of its target for last year.
BOJ may replace some ETF guidelines with pledge to step in during crisis
The Bank of Japan may replace some numerical guidelines for its purchases of exchange-traded funds (ETF) with a pledge to ramp up buying when markets become volatile, three sources familiar with its thinking said. The move would allow the BOJ to more flexibly slow purchases when markets are stable, while reassuring investors it will step in forcefully when shock events trigger turbulence, they said. While there is no consensus on the final decision, the idea is among options being floated within the BOJ ahead of a review of its policy tools due in March, the sources told Reuters.
Dollar Set for Small Weekly Gain
The benchmark government bond yield (LB29DA, 8.8 years) on the previous trading day was 1.40, +0.00 bps. Thai benchmark government bond yield (LB29DA) could be between 1.38-1.42. Meantime, the latest closed US 10-year bond yields was 1.29%, +0.00bps. USDTHB on the previous trading day closed around 30.02 Moving in a range from 29.98-30.03 this morning. USDTHB could be closed between 29.98-30.03 today. Meantime, The dollar index gained some ground on Friday, consolidating above the 90.60 region and on track for a small weekly gain as higher US Treasury yields drove investors to the greenback.
Sources : Bloomberg, CNBC, Investing, CEIC
