- USDTHB: moving in the range 38.31-38.45 this morning, supportive level at 38.20 resistance level at 38.50
· SET Index: 1,588.7 (-0.10%), 19 Oct 2022
· S&P 500 Index: 3,695.2 (-0.67%), 19 Oct 2022
· Thai 10-year government bond yield (interpolated): 3.29 (+5.78 bps), 19 Oct 2022
· US 10-year treasury yield: 4.14 (+13.00 bps), 19 Oct 2022
- US mortgage applications fall for 4th week
- Eurozone inflation rate confirmed at new high
- UK consumer price moves back to double-digit again, up to 40-year high
- 10Y US treasury bond rout resumes
US mortgage applications fall for 4th week According to Mortgage Bankers Association of America, mortgage applications in the US fell 4.5% in the week ending October 14th, a fourth consecutive decline as the 30-year mortgage rate hit 6.94% for the first time since 2002. Applications to purchase a home loan decreased 3.7% and the refinancing index dropped 6.8%. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.94% from 6.81%, with points decreasing to 0.95 from 0.97 (including the origination fee) for loans with a 20% down payment. That is the highest rate since 2002 on the MBA’s index.
Eurozone inflation rate confirmed at new high The statistical office of the European Union published by Eurostat, the Eurozone annual inflation rate was revised slightly down to 9.9%yoy or rose 1.2%mom in September 2022 from a preliminary estimate of 10.0%yoy. Still, it was the highest rate since comparable records began in 1991, as the euro hit a 20-year low and the bloc's energy crisis deepened. Main upward pressure came from energy, followed by food, alcohol & tobacco, services, and non-energy industrial goods. Meanwhile, the annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 4.8%yoy in September, also the highest on record. The lowest annual rates were registered in France (6.2%), Malta (7.4%) and Finland (8.4%). The highest annual rates were recorded in Estonia (24.1%), Lithuania (22.5%) and Latvia (22.0%). Compared with August, annual inflation fell in six member states, remained stable in one and rose in twenty.
UK consumer price moves back to double-digit again, up to 40-year high According to estimates published by the Office for National Statistics, the consumer price index rose 10.1%yoy in September, matches the 40-year high British inflation reached in July. Inflation unexpectedly dipped to 9.9%yoy in August, down from 10.1%yoy in July, on the back of a fuel price decline. Increasing food, transport and energy prices were the biggest contributing factors to inflation, food was up 14.6%yoy, transport was up 10.9%yoy, while the price of furniture and household goods rose 10.8%yoy. The rate rose in the year to September 2022 as the country’s cost-of-living crisis continues to hammer households and businesses ahead of a tough winter.
10Y US treasury bond rout resumes The 10-year government bond yield (interpolated) on the previous trading day was 3.29, +5.78 bps. The benchmark government bond yield (LB31DA) was 3.17, +3.00 bps. LB31DA could be between 3.00-3.20. Meantime, the latest closed US 10-year bond yields was 4.14, +13.00 bps. USDTHB on the previous trading day closed around 38.21 Moving in a range of 38.31-38.45 this morning. USDTHB could be closed between 38.20-38.50 today. The US 10-year treasury yield, the benchmark for borrowing costs worldwide, moved towards the 4.1% mark, the highest since October 2008, with investors fretting about the prospects of a recession from aggressive central bank actions to tame inflation. Germany's 10-year bond yield, the European benchmark, rose to as high as 2.4%, closing in on its highest level since August 2011. Also, volatility is expected to remain elevated, with sharp moves in gilts sending shockwaves through other bond markets.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
