Too busy with China, Trump to delay auto tariffs?

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Too busy with China, Trump to delay auto tariffs?


USDTHB traded between 31.50-31.62 yesterday and closed around 31.54.

Amid the trade tension against China escalated, the Trump administration is expected to delay auto tariffs by up to six months, which could soften the situations with the EU and Japan in specific. Besides, the US auto tariffs are not also backed by the US domestic automotive industry. In addition, given such auto tariffs imposed, Germany’s auto sector could drop by as much as 12% in value.

Unexpectedly, after China showed worsening economic figures, inclusive of retail sales, industrial production, and fixed asset investment, US April retail sales and industrial production were also getting worse.

In line with the consensus forecasts, the euro area and Germany’s economies grew in he first quarter of 2019 by 1.2% and 0.7%, respectively.

Moving between 31.51-31.55 this morning, USDTHB could be between 31.49-31.59 today.

 

US treasury yield curve inverted on worsening US and China data

Thai 10-year government bonds (LB28DA) yesterday yielded 2.432%, -0.40 bps.

Thai and US 10-year government bond yields yesterday closed at 2.524%, -0.11 bps, and 2.37%, -5.0 bps, respectively.

On account of the worsening economic releases, particularly reflecting domestic consumption and private investment, of both the US and Chinese economies, the US treasury yield curve became inverted, i.e. 10-year yield (2.37%) below 3-month yield (2.42%).

Today, Thai 10-year government bonds (LB28DA) could be between 2.40-2.44%.

 

Sources: bangkokbiznews, BBC, Bloomberg, CNBC, CNN, Investing.com, Reuters

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