Halister News

(Bloomberg) -- THB 5-year interest-rate swaps may decline toward record low at 1.63%, set on July 7, if BOT surprises with a rate cut or dovish outlook on monetary policy tomorrow, according to Bloomberg strategist Mark Cranfield.

• Bank of Thailand is forecast to hold benchmark rate at 1.5% at its monetary policy meeting tomorrow, according to 22 of 23 economists in Bloomberg survey; one sees a cut to 1.25%
• 5-yr swaps at 1.725% holding below 100-DMA at 1.814% since June 6; Slow stochastics %K at 60, turning lower from overextended territory; click here for chart
  • Baht currently trading steady at 34.770 per dollar.
• Thai CPI should move toward forecast range in late 2016, Somkiat Triratpan, head of the ministry’s trade policy and strategy office said yday
• BOT’s independence unaffected by recent Thai referendum, governor tells CNBC
• Thailand’s King health improves, Royal Palace said in statement yday
• Global investors were net buyers of 22.5b baht in Thai bonds yesterday, most since June 7, according to Thai Bond Market Association
• Yield on 3.85% govt bond due Dec. 2025 steady at 2.015%, after falling 5 bps on Aug. 1
• Thailand 5-year credit protection costs steady at 93.5 bps versus this year’s low at 89 bps set on July 22, according to CMA New York data
• NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.