- USDTHB: moving in the range 35.69-35.755 this morning supportive level at 35.60 resistance level at 35.90
· SET Index: 1,379.6 (-0.04%), 12 Mar 2024
· S&P 500 Index: 5,175.3 (+1.11%), 12 Mar 2024
· Thai 10-year government bond yield (interpolated): 2.50 (+0.35 bps), 12 Mar 2024
· US 10-year treasury yield: 4.16 (+6.00 bps), 12 Mar 2024
- US inflation rises 3.2% in February, faster than estimates
- US February budget deficit climbs on interest costs, tax refunds
- BOJ to offer guidance on bond buying pace upon ending YCC
- Asia FX muted as dollar steadies before CPI data; Yen retreats
US inflation rises 3.2% in February, faster than estimates Headline US consumer price growth accelerated in February, while the underlying measure was faster than anticipated, in a sign of sticky inflationary pressures that could complicate the timing of potential Federal Reserve interest rate cuts this year. The annualized reading of the closely-watched consumer price index increased by 3.2% last month, quicker than estimates that it would remain at a pace of 3.1% notched in January. The year-on-year core figure, which strips out volatile items like food and fuel, cooled to 3.8% from 3.9%, but was still slightly above projections of 3.7%. Month-on-month, the overall consumer price index rose by 0.4% in February, in line with expectations and faster than the 0.3% uptick in January. The core gauge came in at 0.4%, matching the prior month and marginally hotter than expectations of 0.3%.
US February budget deficit climbs on interest costs, tax refunds The US federal budget deficit grew in February with outlays surging as annual tax-filing season kicked into gear and interest costs on the national debt kept rising, the US Treasury Department said. The deficit last month was $296 billion, 13% larger than the $262 billion shortfall in February 2023. Outlays for the month grew 8% to $567 billion - a record for the month - while receipts rose 3% to $271 billion. Economists polled by Reuters had expected a deficit of $299 billion in February. For the first five months of the fiscal year, the deficit rose by $106 billion, or 15%, to $828 billion as interest costs on the national debt rose. The Treasury said both receipts and outlays were records on a year-to-date basis, with receipts up 7% to $1.856 trillion, and outlays up 9% to $2.684 trillion.
BOJ to offer guidance on bond buying pace upon ending YCC The Bank of Japan will likely offer numerical guidance on how much government bonds it will buy upon ending negative interest rates and yield curve control (YCC), to avoid causing market disruptions, said four sources familiar with its thinking. With inflation exceeding the BOJ's 2% inflation target for well over a year, many market players expect the central bank to pull short-term interest rates out of negative territory either next week or in April. Upon ending negative rates, the BOJ is also likely to ditch yield curve control (YCC) - a policy that guides the 10-year bond yield around 0% with a loose cap of 1%, the sources said. While such a step would allow market forces to play a bigger role in bond price moves, the BOJ will likely provide guidance on the pace of bond buying to prevent long-term interest rates from rising too much.
Asia FX muted as dollar steadies before CPI data; Yen retreats The 10-year government bond yield (interpolated) on the previous trading day was 2.50, +0.35 bps. The benchmark government bond yield (LB31DA) was 2.495, -0.5 bps. Meantime, the latest closed US 10-year bond yields was 4.16, +6.00 bps. USDTHB on the previous trading day closed around 35.51 Moving in a range of 35.69-35.755 this morning. USDTHB could be closed between 35.60-35.90 today. Most Asian currencies moved little on Tuesday, while the dollar steadied as markets awaited key US inflation data for more cues on when the Federal Reserve could begin cutting interest rates. The Japanese yen was the worst performer among its regional peers, retreating sharply from an over one-month high after comments from top Bank of Japan officials somewhat cooled bets on an immediate rate hike from the central bank. Yen sinks as BOJ’s Ueda tempers optimism over economy The yen weakened about 0.3% against the dollar, retreating from an over one-month high hit on Monday. A reversal in the currency came largely after BOJ Governor Kazuo Ueda said that while the Japanese economy was recovering.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
