- USDTHB: moving in the range 34.64-34.74 this morning, supportive level at 34.50 resistance level at 34.80
· SET Index: 1,604.4 (-0.85%), 20 Dec 2022
· S&P 500 Index: 3,821.6 (+0.10%), 20 Dec 2022
· Thai 10-year government bond yield (interpolated): 2.65 (+4.32
bps), 20 Dec 2022
· US 10-year treasury yield: 3.69 (+12.0 bps), 20 Dec 2022
- Higher mortgage rates depress U.S. single-family housing starts, building permits
- German PPI slumps again in November as energy spike unwinds
- BOJ jolts markets in surprise change to yield curve policy
- Oil rises past U.S. storm jitters as inventories shrink
Higher mortgage rates depress U.S. single-family housing starts, building permits U.S. single-family homebuilding tumbled to a 2-1/2-year low in November and permits for future construction plunged as higher mortgage rates continued to depress housing market activity. The dour report from the Commerce Department on Tuesday followed on the heels of news on Monday that confidence among homebuilders plummeted for a record 12th month in December. Single-family housing starts, which account for the biggest share of homebuilding, dropped 4.1% to a seasonally adjusted annual rate of 828,000 units last month. That was the lowest level since May 2020, when the economy was reeling from the first wave of the COVID-19 pandemic. Outside the pandemic plunge, single-family starts are the weakest since February 2019. Single-family homebuilding decreased in the South and Midwest, generally considered as the more affordable regions of the United States. It increased in the Northeast and West.
German PPI slumps again in November as energy spike unwinds Producer price inflation in Europe’s largest economy fell sharply in November for the second straight month as a spike in energy prices unwound further. Federal Statistics Office Destatis said factory gate prices fell 3.9% from October, after a 4.2% drop the previous month. Those moves followed three months in which surging prices for gas and electricity drove producer prices up by a total of over 15%. The figures suggest a measure of relief for the European Central Bank, indicating that the cardinal factors behind this year’s surge in inflation are starting to recede: the annual rate of producer price inflation fell to 28.2% and is now down from a peak of 45.8%. Excluding energy prices, producer price inflation slowed to 12.9% on the year, having peaked in May at 16.5%.
BOJ jolts markets in surprise change to yield curve policy The Bank of Japan shocked markets on Tuesday with a surprise tweak to its bond yield control that allows long-term interest rates to rise more, a move aimed at easing some of the costs of prolonged monetary stimulus. Shares tanked, while the yen and bond yields spiked following the decision, which caught off-guard investors who had expected the BOJ to make no changes to its yield curve control (YCC) until Governor Haruhiko Kuroda steps down in April. In a move explained as seeking to breathe life back into a dormant bond market, the BOJ decided to allow the 10-year bond yield to move 50 basis points either side of its 0% target, wider than the previous 25 basis point band. But the central bank kept its yield target unchanged and said it will sharply increase bond buying, a sign the move was a fine-tuning of existing ultra-loose monetary policy rather than a withdrawal of stimulus.
Oil rises past U.S. storm jitters as inventories shrink The 10-year government bond yield (interpolated) on the previous trading day was 2.65, +4.32 bps. The benchmark government bond yield (LB31DA) was 2.33, +2.34 bps. LB31DA could be between 2.20-2.70. Meantime, the latest closed US 10-year bond yields was 3.69, +12.0 bps. USDTHB on the previous trading day closed around 34.92 Moving in a range of 34.64-34.74 this morning. USDTHB could be closed between 34.80-35.20 today. Oil prices crept higher on Wednesday as data signaled a bigger-than-expected weekly draw in U.S. inventories, although concerns over adverse weather conditions weighed on the outlook for near-term demand. Data from the American Petroleum Institute showed that U.S. inventories grew by a bigger than expected 3 million barrels in the week to December 16, heralding a similar trend in official data which is expected to show an over 2-million-barrel build in inventories later in the day. The drop in inventories comes amid supply disruptions caused by the temporary closure of the Keystone pipeline.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
