- USDTHB: moving in the range 36.495-36.57 this morning supportive level at 36.40 resistance level at 36.60
· SET Index: 1,376.6 (+0.30%), 14 May 2024
· S&P 500 Index: 5,221.4 (-0.02%), 14 May 2024
· Thai 10-year government bond yield (interpolated): 2.76 (-0.49 bps), 14 May 2024
· US 10-year treasury yield: 4.45 (-3.00 bps), 14 May 2024
- Producer prices grow at a faster-than-projected rate in April
- Waning Fed rate cut bets boost US Treasury yield forecasts
- China strongly opposes US tariff hikes, pledging measures to defend rights
- Dollar steady ahead of inflation data; sterling slips after job numbers
Producer prices grow at a faster-than-projected rate in April US producer prices grew by a faster-than-anticipated rate of 0.5% on a monthly basis in April, due mainly to elevated costs for services and goods, in a sign of lingering inflationary pressures early in the second quarter. It was a quicker pace than an increase of 0.3% economists had predicted and up from a downwardly revised month-on-month contraction of 0.1% in March. In the twelve months through April, the producer price index (PPI) for final demand moved up by 2.2% as expected -- the largest uptick since a jump of 2.3% in April 2023. An updated mark for the previous month was also revised lower to 1.8%. The index for the cost of services increased by 0.6% in April, the sharpest rise since last July, according to the US Bureau of Labor Statistics. Portfolio management expenses played a major role in the number, offsetting a drop in airline passenger costs.
Waning Fed rate cut bets boost US Treasury yield forecasts Bond strategists upgraded their US Treasury yield forecasts for coming months to their highest since at least November amid sticky inflation and greater conviction in financial markets of fewer Federal Reserve rate cuts this year, a Reuters poll found. After hitting a cycle peak of 5.02% in October 2023, the benchmark US 10-year Treasury yield plummeted over 110 basis points by year-end as traders rapidly priced in nearly 150 basis points of Fed interest rate cuts in 2024. Persistent inflation and strong US economic data have forced markets to dramatically delay those rate cut bets and slash 2024 rate cut pricing to roughly 50 basis points. Ten-year yields, which move inversely to price, have surged roughly 70 basis points from a recent low of 3.78% in late December back to 4.48% currently.
China strongly opposes US tariff hikes, pledging measures to defend rights China strongly opposed the United States' tariff hikes, its commerce ministry said on Tuesday, vowing it will take resolute measures to defend its rights and interests. "US raising Section 301 tariffs violates President Biden's commitment to 'not seek to suppress and contain China's development' and 'not to seek to decouple and break links with China'," said a statement by the ministry, adding the move will "seriously affect the atmosphere of bilateral cooperation.“ US President Joe Biden on Tuesday unveiled a bundle of steep tariff increases on an array of Chinese imports. The new measures affect $18 billion in Chinese imported goods including steel and aluminum, semiconductors, batteries, critical minerals, solar cells and cranes, while retaining Trump-era tariffs on over $300 billion in goods. The announcement confirmed earlier Reuters reporting.
Dollar steady ahead of inflation data; sterling slips after job numbers The 10-year government bond yield (interpolated) on the previous trading day was 2.76, -0.49 bps. The benchmark government bond yield (LB31DA) was 2.76, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.45, -3.00 bps. USDTHB on the previous trading day closed around 36.77. Moving in a range of 36.495-36.57 this morning. USDTHB could be closed between 36.40-36.60 today. The US dollar steadied Tuesday, largely drifting ahead of the release of key inflation data that are likely to factor into the outlook for interest rates. The Dollar Index, which tracks the greenback against a basket of six other currencies, edged 0.1% higher to 105.250, in rangebound trading. The dollar, like the foreign exchange market as a whole, has seen calm trading at the start of this week, as traders await the release of the latest US inflation data, which will likely dictate near-term sentiment regarding potential rate cuts. The April producer prices index is due later Tuesday, ahead of Wednesday’s crucial CPI report which is expected to show core CPI rose 0.3% month-on-month in April, less than 0.4% growth the prior month.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
