- USDTHB: moving in the range 35.90-35.93 this morning supportive level at 35.85 resistance level at 36.15
· SET Index: 1,389.3 (+0.07%), 12 Feb 2024
· S&P 500 Index: 5,021.8 (-0.09%), 12 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.57 (+0.11 bps), 12 Feb 2024
· US 10-year treasury yield: 4.17 (+0.00 bps), 12 Feb 2024
- Sharp US Treasury yield decline on pause as Fed shows patience on rates
- US January deficit drops sharply as receipts grow, tax refunds fall
- Euro zone banks face new slate of risks, supervisor warns
- Bitcoin hits $50k level for first time in more than two years
Sharp US Treasury yield decline on pause as Fed shows patience on rates The recent sharp decline in US Treasury yields is on pause until later this year, according to bond strategists polled by Reuters, with markets leaning against relentless push-back from the Federal Reserve on any need for an early interest rate cut. Having spent most of 2023 considerably over 4.0%, benchmark 10-year yields fell into a tailspin towards the end of the year as markets aggressively priced in a series of Fed interest rate cuts starting in March. Currently at 4.15%, the 10-year yield tumbled ahead of the US central bank's policy meeting at the end of last month in anticipation of a signal it would start reducing borrowing costs soon.
US January deficit drops sharply as receipts grow, tax refunds fall The US federal budget deficit fell sharply in January to $22 billion as receipts hit a record for that month, partly because tax refunds fell after the Internal Revenue Service (IRS) cleared a backlog of pandemic-delayed tax returns. The deficit last month was $17 billion, or 43%, less than the $39 billion deficit in January 2023. Outlays for the month grew 3% to $499 billion, while receipts jumped 7% to $477 billion. This January's comparison with a year ago was also significantly helped by the $36 billion bailout of a Teamsters union pension fund in January 2023, as no similar large one-time outlays were recorded this year.
Euro zone banks face new slate of risks, supervisor warns Euro zone banks face a permanently changed risk landscape that requires lenders to alter how they operate, the European Central Bank's new top supervisor said in her inaugural speech. Surging interest rates, rising geopolitical risk, quicker deposit movements, multiplying cyber attacks and climate risk are all changing the fundamental nature of the business, and lenders may not be sufficiently prepared, said Claudia Buch, who took over from Andrea Enria at the start of the year. The changed environment, including record fast rate hikes by the ECB, are already weighing on firms and there are "clear indicators" that asset quality is already starting to deteriorate. A key problem is that banks do not yet have the expertise to work in such an environment.
Bitcoin hits $50k level for first time in more than two years The 10-year government bond yield (interpolated) on the previous trading day was 2.57, +0.11 bps. The benchmark government bond yield (LB31DA) was 2.58, -1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.17, +0.00 bps. USDTHB on the previous trading day closed around 35.90 Moving in a range of 35.90-35.93 this morning. USDTHB could be closed between 35.85-36.15 today. Bitcoin hit the $50,000 level for the first time in more than two years as the world's largest cryptocurrency was buoyed by expectations of interest rate cuts later this year and last month's regulatory nod for US exchange-traded funds designed to track its price. The cryptocurrency has risen 16.3% so far this year, touching its highest since Dec. 27, 2021. Bitcoin was up 4.96% on the day at $49,899, having oscillated around the $50,000 level. Global stock indexes also edged higher, as traders looked for cues on when the US Federal Reserve might begin cutting interest rates. Analysts and financial market expectations both point to May as a potential start for rate cuts this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
