- USDTHB: moving in the range 36.90-37.20 this morning supportive level at 37.05 resistance level at 37.13
· SET Index: 1,447.3 (-1.52%), 3 Oct 2023
· S&P 500 Index: 4,229.5 (-1.38%), 3 Oct 2023
· Thai 10-year government bond yield (interpolated): 3.24 (+8.68 bps), 3 Oct 2023
· US 10-year treasury yield: 4.81 (+12.00 bps), 3 Oct 2023
- US job openings post largest increase in two years; quits rate unchanged
- US Treasury yields hit decade high, driven by strong labor market and inflation fears
- Japan will take appropriate steps vs excessive yen moves
- Yen surges against dollar, leads some to suspect intervention
US job openings post largest increase in two years; quits rate unchanged U.S. job openings unexpectedly increased in August amid a surge in demand for workers in the professional and business services sector, pointing to a still-tight labor market that could compel the Federal Reserve to raise interest rates next month. Job openings, a measure of labor demand, were up 690,000 to 9.610 million on the last day of August. That was the most in just over two years. Data for July was revised higher to show 8.920 million job openings instead of the previously reported 8.827 million. Economists polled by Reuters had forecast 8.800 million job openings in August. Quits rose 19,000 to 3.638 million, ending two consecutive months of decreases. The quits rate, viewed as a measure of labor market confidence, was unchanged at 2.3%. Economists said that data bodes well for keeping wage inflation contained.
US Treasury yields hit decade high, driven by strong labor market and inflation fears US Treasury yields have surged to levels not seen since August 2007, amid expectations of continued monetary tightening by the Federal Reserve and a robust labor market. The 10-year yield climbed to a staggering 4.785%, while the 30-year bond yield reached 4.874%. This significant increase in yields reflects investors' anticipation of an extended Federal Reserve's monetary policy adjustment in response to record inflation rates and a strong labor market. The central bank has been wrestling with a record inflation rate that stands at a 40-year high. Since March 2022, it has raised interest rates 11 times, although it refrained from doing so twice. These rate hikes have heightened fears of a potential recession due to the elevated cost of borrowing.
Japan will take appropriate steps vs excessive yen moves Japan will take appropriate steps against excessive moves in the yen "without ruling out any options", Finance Minister Shunichi Suzuki said, keeping markets on alert over the chance of yen-buying intervention. Suzuki told reporters he would not comment on whether Tokyo intervened in the exchange rate market overnight to prop up the yen. "Currency rates ought to move stably driven by markets, reflecting fundamentals. Sharp moves are undesirable," Suzuki told reporters. "The government is watching market developments very carefully. We're ready to take necessary action against excess volatility, without ruling out any options," he added. Japan's top currency diplomat Masato Kanda told reporters earlier that authorities were looking at various factors.
Yen surges against dollar, leads some to suspect intervention The 10-year government bond yield (interpolated) on the previous trading day was 3.24, +8.68 bps. The benchmark government bond yield (LB31DA) was 3.14, +9.00 bps. Meantime, the latest closed US 10-year bond yields was 4.81, +12.00 bps. USDTHB on the previous trading day closed around 37.11. Moving in a range of 36.90-37.20 this morning. USDTHB could be closed between 37.05-37.13 today. The yen strengthened sharply against the dollar, leading some market participants to believe Japanese policymakers had intervened to support the currency, although others said the size of the move was not convincing enough. Traders have been on watch for weeks for a possible intervention by Japanese officials to combat a sustained depreciation in the yen. Tuesday's move saw the dollar break above the 150 level for the first time since October 2022, before tumbling to a low of 147.30 as the yen surged. The 150 level is one that many traders suspect could mark the point at which Japanese authorities, who have reiterated their concern about excessive volatility and currency weakness, could intervene.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
