- USDTHB: moving in the range 32.665-32.695 this morning supportive level at 32.50 resistance level at 32.80
- SET Index: 1,179.8 (-0.8%), 21 May 2025
- S&P 500 Index: 5,844.6 (-1.6%), 21 May 2025
- Thai 10-year government bond yield (interpolated): 1.881 (+1.87 bps), 21 May 2025
- US 10-year treasury yield: 4.58 (+10.0 bps), 21 May 2025
- The spotlight stayed on developments surrounding the tax bill
- Giant US companies are rushing to Europe to borrow money
- UK inflation rise leads traders to cut BOE rate cut bets
- China-US shipments jump as firms rush ahead of tariff deadline
- BI cuts rates as economy and lending cool
- Dollar dips as markets await Trump tax bill vote
The spotlight stayed on developments surrounding the tax bill
Lawmakers reached a deal on the SALT deduction, but some Republican hardliners are still concerned the bill doesn’t include enough spending cuts. The Congressional Budget Office (CBO) says the bill could increase the deficit by $2.3 trillion over the next 10 years, raising concerns about government debt. House Speaker Johnson said the House will vote on the bill tonight, though the exact timing is still unclear.
Giant US companies are rushing to Europe to borrow money
Corporate America giants like Pfizer and Alphabet are borrowing in euros at a record pace, with over €83 billion in reverse Yankee deals sold this year, up 35% from 2024. The shift is driven by anxiety over President Donald Trump's tariff threats, dollar volatility, and fears about the US debt burden, making the European market a more attractive funding avenue.
UK inflation rise leads traders to cut BOE rate cut bets
UK inflation surged to 3.5% in April, its highest in over a year, driven by rising energy, water, and other regulated prices. The increase in household bills, effective from April's new financial year, contributed 0.8 percentage points to the overall inflation rise. Services inflation also accelerated to 5.4%, above the Bank of England's 5% forecast, while core inflation reached 3.8%, the highest since last April. The unexpected inflation spike has led investors to scale back expectations for interest rate cuts from the BOE.
China-US shipments jump as firms rush ahead of tariff deadline
Freight bookings from China to the U.S. surged to about 228,000 TEUs in the week starting May 12 after a 90-day tariff reduction deal. Spot rates from Shanghai to Los Angeles rose 16% to $3,136 per container. The spike, driven by front-loading to avoid future tariffs, could disrupt supply chains for the next two to three months.
BI cuts rates as economy and lending cool
Bank Indonesia cut its benchmark rate by 25 basis points to 5.5 percent, its lowest since 2022, to boost slowing growth and lending. Governor Perry Warjiyo said another cut is possible if the rupiah stays stable.
Dollar dips as markets await Trump tax bill vote
The 10-year government bond yield (interpolated) on the previous trading day was 1.881, +1.87 bps. The benchmark government bond yield (LB353A) was 1.877, +1.69 bps. Meantime, the latest closed US 10-year bond yields was 4.58, +10.0 bps. USDTHB on the previous trading day closed around 32.75, moving in a range of 32.665 – 32.695 this morning. USDTHB could be closed between 32.50 – 32.80 today. The dollar continued to soften despite limited headline news, with no major US data releases or Fed commentary. However, USD-denominated assets appeared pressured following a weak 20-year bond auction and growing concerns about the potential deficit impact of the proposed US tax bill. The euro benefited from early dollar weakness, though its gains were limited and trading turned choppy during the US session. The British pound saw modest gains on the day, though momentum from the CPI-driven rally to a multi-year high eventually faded. The Japanese yen held firm, supported by the dollar’s decline and increased haven demand amid a risk-off sentiment.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
