- SET Index: 1,478.1 (-1.50%), 22 Feb 2020
- S&P 500 Index: 3,876.5 (-0.78%), 22 Feb 2020
- Thai 10-year government bond yield: 1.60 (+18.00 bps), 22 Feb 2020
- US 10-year treasury yield: 1.37% (+3.00 bps), 22 Feb 2020
- StanChart says U.S.-China ties may improve in two years — but don’t expect Trump tactics to go away
- U.S. House budget panel approves $1.9 trillion COVID-19 aid bill
- Traders See Earlier Fed Hikes, Even as Goldman Cautions on Pace
- Dollar Down, Investors Await Fed’s Response to Rising Inflation
StanChart says U.S.-China ties may improve in two years — but don’t expect Trump tactics to go away
Standard Chartered Bank is bullish on U.S.-China relations and expects ties between the two countries to improve in the next 12 to 24 months. Even as U.S. President Joe Biden and his team are focused on improving domestic growth, they recognize it is critical to create conditions for global trade to thrive. Janet Yellen said “For the moment, we’ve kept the tariffs in place that were, you know, put in place by the Trump administration.” However, she added that the Biden administration will evaluate how to proceed going forward.
U.S. House budget panel approves $1.9 trillion COVID-19 aid bill
The U.S. House of Representatives Budget Committee on Monday approved legislation with $1.9 trillion in new coronavirus relief, advancing a top priority of President Joe Biden toward a full House vote on passage expected later this week. Senate Majority Leader Chuck Schumer said later that efforts in the House and Senate have kept the bill on track to be approved by both chambers and sent to Biden for his signature before federal unemployment benefits expire on March 14. Democrats are using a procedural strategy called reconciliation to advance the bill, which will allow them to pass it in the Senate without Republican support.
Traders See Earlier Fed Hikes, Even as Goldman Cautions on Pace
Market pricing shows traders are bringing forward forecasts for when the Federal Reserve will raise interest rates amid growing reflation optimism. Interest-rate swap markets are pricing the first 25 basis point of Fed hikes around mid-2023, versus early 2024 earlier in February. The Fed wants to end asset purchases before commencing rate hikes, which provides a “soft bound -- around late 2022 -- as the earliest plausible liftoff time,” according to Goldman Sachs strategists. While there’s now 50 basis points of increases expected for 2024, any more may be hard to sustain.
Dollar Down, Investors Await Fed’s Response to Rising Inflation
The benchmark government bond yield (LB29DA, 8.8 years) on the previous trading day was 1.60, +18.00 bps. Thai benchmark government bond yield (LB29DA) could be between 1.55-1.65. Meantime, the latest closed US 10-year bond yields was 1.37%, +3.00bps. USDTHB on the previous trading day closed around 30.035 Moving in a range from 29.97-30.00 this morning. USDTHB could be closed between 29.97-30.03 today. Meantime, The dollar was down on Tuesday morning, dropping to a near six-week low as investors await Fed potential response to rising inflation worries.
Sources : Bloomberg, CNBC, Investing, CEIC