- USDTHB : moving in the range 33.50 – 33.58 this morning, supporting level of USDTHB is around 33.50 and resistance level is around 33.60
- SET Index: 1,701.2 (-0.10%), 5 Apr 2022
- S&P 500 Index: 4,481.2 (-0.98%), 6 Apr 2022
- Thai 10-year government bond yield (interpolated) : 2.41% (-1.34 bps), 5 Apr 2022
- US 10-year treasury yield: 2.61 (+700bps), 6 Apr 2022
- Fed officials plan to shrink the balance sheet by $95 billion a month, meeting minutes indicate
- China's cabinet flags more measures to support economy
- Asia’s coal price jumps as EU’s Russia ban threatens supply
- Asian shares slip on hawkish Fed, dollar stands tall
Fed officials plan to shrink the balance sheet by $95 billion a month, meeting minutes indicate Federal Reserve officials discussed how they want to reduce their trillions in bond holdings at the March meeting, with a consensus around $95 billion a month. Officials “generally agreed” that a maximum of $60 billion in Treasurys and $35 billion in mortgage-backed securities would be allowed to roll off, phased in over three months and likely starting in May. In addition to the balance sheet talk, officials also discussed the pace of interest rate hikes ahead, with members leaning toward more aggressive moves of the potential rate hikes of 50 basis points. Also, Fed officials sharply raised their inflation outlook and lowered their economic growth expectations. Surging inflation is the driving factor behind the central bank tightening.
China's cabinet flags more measures to support economy China's cabinet on Wednesday held out the prospect of more measures to support an economy under pressure from a slowing global recovery, volatile commodity markets and COVID-19 outbreaks. Authorities will step up financing support for consumption and investment, and the central bank will provide loans to support tech innovation and an inclusive elderly care sector. Authorities will also postpone pension insurance premium payments by firms in the catering, retail, tourism, civil aviation and transport sectors in the second quarter. China's top European business group warned that its "zero-COVID" strategy was harming the attractiveness of Shanghai as a financial hub, echoing analysts voicing caution over the mounting economic toll of coronavirus curbs.
Asia’s coal price jumps as EU’s Russia ban threatens supply Coal prices in Asia jumped as Europe’s move to ban Russian imports of the fuel threatened to deliver a new global supply challenge. Coal futures for April jumped 6.4% to $281 a ton Tuesday, the biggest gain in almost two weeks as European consumers step up a hunt for alternatives to Russian coal. Miners in Indonesia, the top shipper of coal for power stations, have been approached by some potential buyers from European countries. However, It isn’t clear if the suppliers will be able to boost deliveries as they have limited spare capacity and are mandated to first prioritize local demand. Even though Asian coal prices had declined over the last several weeks after China’s lockdowns, the benchmark prices are still more than 2.5 times higher than a year ago.
Asian shares slip on hawkish Fed, dollar stands tall Asian shares retreated on Thursday in line with a global selloff, as markets were spooked by more aggressive noises from U.S. policymakers about the need for tighter monetary policy, which also kept the dollar near a two-year peak. In currency markets the prospect of quantitative tightening in the United States kept the dollar near a two-year high against a basket of currencies. The dollar index was also supported by commodity currencies' retreat from recent highs due to a dip in oil prices.
The 10-year government bond yield (interpolated) on the previous trading day was 2.41, -1.34 bps. The benchmark government bond yield (LB31DA) was 2.33, -2.00 bps. LB31DA could be between 2.30-2.40. Meantime, the latest closed US 10-year bond yields was 2.61%, +7.00bps. USDTHB on the previous trading day closed around 33.58, moving in a range from 33.50-33.58 this morning. USDTHB could be closed between 33.50-33.60 today.
