President Joe Biden will announce steps on Tuesday to narrow the large and persistent racial wealth gap that divides Black, Latino and white Americans, although he will stop short of a cancellation of student loan debt demanded by civil rights groups. Biden, a Democrat, will call for billions of dollars in grants and investments to benefit poor minority communities, as well as a big increase in federal procurement from small, disadvantaged businesses, and a crackdown on housing discrimination. He will unveil the measures during a visit to the Greenwood neighborhood of Tulsa, Oklahoma, where hundreds of Black Americans were massacred by a white mob 100 years ago. They are part of a broader push to reverse systemic racism, and build on executive actions.
China's banks are bursting with dollars, and that's a worry
A mountain of dollars on deposit in China has grown so large that banks are struggling to loan the currency and traders say it poses
a risk to official efforts to control a fast-rising yuan. Boosted by surging export receipts and investment flows, the value of foreign cash deposits in China's banks leapt above $1 trillion for the first time in April, official data shows A previous jump, late in 2017, preceded heavy dollar selling which turbocharged a steep yuan rally in early 2018. Market participants say the size of the even bigger hoard this time raises that risk, and leaves policymakers' efforts to restrain the yuan vulnerable to the whims of the exporters and foreign investors who own the cash. The yuan is at risk to past 6.25 or 6.2 per dollar.
German economy to grow between 3.4% and 3.7% this year – minister
The German economy, Europe's largest, should grow by between 3.4% and 3.7% this year, Economy Minister Peter Altmaier said on
Tuesday, offering a more upbeat outlook than when the government raised its forecast at the end of April. “We expect it to grow by
4% next year," he added. Asked whether he was concerned that a rise in German consumer prices could strengthen, Altmaier said
he was "watching this development with inflation very closely" but could not pass judgment on it yet. Germany's annual consumer
price inflation accelerated in May, advancing further above the European Central Bank's target of close to but below 2%. In addition, Consumer prices rose by 2.4% in May, up from 2.1% in April. A Reuters forecast had pointed to a May reading of 2.5%.
Dollar in Narrow Range as Fed Officials Continue to Downplay Inflation Fears
The 10-year government bond yield (interpolated) on the previous trading day was 1.86, +1.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.85, +1.00 bps. LB31DA could be between 1.83-1.88. Meantime, the latest closed US 10-year
bond yields was 1.62%, +4.00bps. USDTHB on the previous trading day closed around 31.14 Moving in a range from 31.13-31.18
this morning. USDTHB could be closed between 31.12-31.19 today. Meantime, The dollar continued to trade in a narrow range
Tuesday, as Federal Reserve officials continued to downplay inflation fears, suggesting accommodative monetary policy will
continue as the economy remains far from its goals.
Sources : Bloomberg, CNBC, Investing, CEIC
