- USDTHB: moving in the range 34.13-34.23 this morning, supportive level at 34.00 resistance level at 34.25
· SET Index: 1,585.1 (+0.50%), 22 March 2023
· S&P 500 Index: 3,937.0 (-1.66%), 22 March 2023
· Thai 10-year government bond yield (interpolated): 2.38 (-1.30 bps), 22 March 2023
· US 10-year treasury yield: 3.48 (-11.00 bps), 22 March 2023
- SVB-focused Fed hikes rates 25 bp, suggests one more on horizon
- UK inflation surprise pressures BoE to raise rates again
- Japan's land prices up at fastest pace since 2008 on gradual econ recovery
- Dollar hits near 7-week low as Fed’s terminal rate approaches
SVB-focused Fed hikes rates 25 bp, suggests one more on horizon The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs amid recent turmoil in financial markets spurred by the collapse of two U.S. banks. The move set the U.S. central bank's benchmark overnight interest rate in the 4.75%-5.00% range, with updated projections showing 10 of 18 Fed policymakers still expect rates to rise another quarter of a percentage point by the end of this year, the same endpoint seen in the December projections. But in a key shift driven by the sudden failures this month of Silicon Valley Bank (SVB) and Signature Bank, the Fed's latest policy statement no longer says that "ongoing increases" in rates will likely be appropriate. Instead, the policy-setting Federal Open Market Committee said only that "some additional policy firming may be appropriate," leaving open the chance that one more quarter-of-a-percentage-point rate increase would represent at least an initial stopping point for the rate hikes.
UK inflation surprise pressures BoE to raise rates again British inflation unexpectedly rose to 10.4% in February, pushed up by higher food and drink prices in pubs and restaurants, according to official data which is likely to prompt the Bank of England to raise interest rates on Thursday. Economists polled by Reuters had forecast that the annual consumer price inflation rate would drop to 9.9% in February from January’s 10.1% and move further away from October’s 41-year high of 11.1%. The figures – including increases in underlying inflation measures that the BoE closely monitors – are likely to bolster the concerns of those BoE policymakers who worry that inflation will be slow to fall, even after 10 straight rate hikes. Investors had been split on whether the central bank would pause that run after the recent upheaval in the global banking sector. But financial markets on Wednesday fully priced in a quarter-point increase to 4.25%.
Japan's land prices up at fastest pace since 2008 on gradual econ recovery Japan's land prices rose for a second straight year at the fastest pace since 2008, a government survey showed on Wednesday, spurred by signs of economic recovery after the coronavirus crisis. Average land prices grew 1.6% in 2022, outstripping the previous year's gain of 0.6%, with the trend spreading to the countryside, the survey by the land ministry showed. It was the fastest pace of increase since a 1.7% in 2008. Demand for housing in urban areas was solid, partly because of low interest rates, while a shift to working from home helped land prices in the suburbs. Demand for offices and condominium sites boosted a recovery in commercial prices. "The recovery trend in land prices towards the pre-COVID level has become more remarkable, as prices in urban areas continued to grow and expanded to rural areas as well."
Dollar hits near 7-week low as Fed’s terminal rate approaches The 10-year government bond yield (interpolated) on the previous trading day was 2.38, -1.30 bps. The benchmark government bond yield (LB31DA) was 2.42, -3.00 bps. LB31DA could be between 2.20-2.70 Meantime, the latest closed US 10-year bond yields was 3.48, -11.00 bps. USDTHB on the previous trading day closed around 34.49 Moving in a range of 34.13-34.23 this morning. USDTHB could be closed between 34.00-34.50 today. The dollar tumbled to a near seven-week low on Wednesday after the Federal Reserve hiked interest rates as expected, although some language in the central bank’s announcement suggested that interest rates may be close to reaching their peak. The dollar index fell about 0.7% against a basket of currencies to 102.185 points- its weakest level since early-February. The Fed hiked rates by 25 basis points to 4.75%-5%, within market expectations. But a change in the bank’s language signaled a potential policy shift, which could see the bank hit its terminal rate sooner than expected.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
