- USDTHB : moving in the range 33.46 – 33.62 this morning, supporting level 33.40, 33.15
- SET Index: 1,609.3 (+1.32%), 07 Dec 2021
- S&P 500 Index: 4,686.8 (+2.05%), 07 Dec 2021
- Thai 10-year government bond yield (interpolated) : 1.93% (+3.00 bps), 07 Dec 2021
- US 10-year treasury yield: 1.48% (+5.00bps), 07 Dec 2021
- U.S. Congress boosts funding for Boeing jet fighters, ships in defense bill
- China central bank cuts rates on relending facility, benchmark cut chances seen as low
- No need now for ECB to boost legacy bond purchase scheme: Muller
- Aussie buoyant, dollar listless as Omicron optimism lifts risk assets
U.S. Congress boosts funding for Boeing jet fighters, ships in defense bill
U.S. lawmakers sought to increase aircraft and Navy ship purchases in an effort to field a robust military and send a signal to Russia and China in a massive annual defense bill released on Tuesday. The fiscal 2022 National Defense Authorization Act, or NDAA, authorizes nearly $770 billion in national defense and adds to the Pentagon's request for ship and aircraft purchases and increases troop pay. The Biden Administration's original budget request from May was debated over the course of the year and the U.S. Congress released its compromise NDAA after Democrat and Republican leaders of the House of Representatives and Senate Armed Services committees negotiated what should be included in the bill.
China central bank cuts rates on relending facility, benchmark cut chances seen as low
China's central bank on Tuesday cut the rates on its relending facility by 25 basis points (bps) to support the rural sector and small firms. After the cut, the three-month relending rate stands at 1.7%, while the six-month rate is at 1.9% and the one-year at 2%. "Today's loans are based on the new interest rate. The rate cut should be in line with the RRR reduction, and they are measures to support the real economy," a banking source told Reuters. But the chance of a cut in the benchmark lending rate remains low in the near term, analysts said. Investors are closely watching to see if the central bank will cut its benchmark lending rate, or loan prime rate (LPR), in the coming months, after it said on Monday it would cut banks' reserve requirement ratios from Dec. 15.
No need now for ECB to boost legacy bond purchase scheme: Muller
Euro zone inflation could exceed the European Central Bank's forecast in the long term, so there is no reason now to boost a legacy bond purchase programme when an emergency scheme ends next March, ECB policymaker Madis Muller said. The ECB is debating life after the 1.85 trillion euro ($2.08 trillion) Pandemic Emergency Purchase Programme expires. Conservative policymakers argue that inflation, running at more than twice the ECB's 2% target, could stay too high even in the long term, while doves warn that price pressures are still too weak, so abandoning ultra-easy monetary policy now would risk undoing years of stimulus. "The Pandemic Emergency Purchase Programme (PEPP) can go to zero in terms of net purchases by March 31," Muller, Estonia's central bank governor, told Reuters in an interview.
Aussie buoyant, dollar listless as Omicron optimism lifts risk assets
The 10-year government bond yield (interpolated) on the previous trading day was 1.93, +3.00 bps. The benchmark government bond yield (LB31DA, 10.0 years) was 1.93, +2.00 bps. LB31DA could be between 1.91-1.97. Meantime, the latest closed US 10-year bond yields was 1.48%, +5.00bps. USDTHB on the previous trading day closed around 33.66 Moving in a range from 33.46-33.62 this morning. USDTHB could be closed between 33.43-33.53 today. Meantime, The Australian dollar hit its strongest level in a week on Wednesday amid a pick-up in risk appetite on signs Omicron may be less severe than other COVID-19 variants, but still vulnerable to existing vaccines.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
