Halister News

(Bloomberg) -- Baht was little changed after the prospects of more gradual rate hike by the Fed had sent it rallying for five days. The benchmark debt also held steady.

• August customs trade data due today in which economists predict a wider trade surplus
  • Exports probably declined 1% y/y in Aug. and imports may have decreased 4%, leaving trade excess of $1.27b vs revised $843m surplus prior month, according to Bloomberg surveys before data due 10:30am local time
• Investors should buy baht-denominated govt bonds maturing in Sept. 2022 at 1.90%, with target at 1.50% and stop loss at 2.15%, Standard Chartered said in Sept. 23 note
  • Purchases on the basis that 5-year bond issuance is light in 1Q17 and no supply of debt maturity shorter than 5-year notes
  • Inflation is likely to stay benign
  • Uncertainty surrounding BOJ and Fed resulted in bond sell-offs in DM, which also weighed on THB bonds while sell-off in THB securities provides tactical buying opportunities in 5-year sector
• Former PM Yingluck should be fined about 35b baht ($1b) for overseeing program to buy rice from farmers above market rates, a state-appointed committee recommended over the weekend
• Global investors bought net 4.4b baht in local bonds Sept. 23, taking weekly inflow to 25.8b baht, according to TBMA data; sold net $18m of local equities Sept. 23: exchange data
• Govt to sell 5b baht of 91-day bills today
• Baht little changed at 34.639 per dollar following 0.8% increase last week
• Yield on 2.125% govt note due Dec. 2026 steady at 2.183%