US Bond Yield Drop Weakens Dollar, Baht Strengthens, SET Eyes 1,620

Post Today•Economy•6d ago

Reader Briefing

US Treasury's surprise increase in long-term bond buybacks has lowered US bond yields and weakened the US dollar, positively impacting the Thai Baht and SET Index outlook.

•The US Treasury increased long-term bond buybacks for 10-30 year bonds to at least 4 billion dollars per operation.
•The US dollar fell to a 3-month low, while the Thai Baht strengthened to approximately 32.8 Baht/Dollar.
•Trinity Securities expects the SET Index to have a support level at 1,600 points and a resistance level at 1,620 points.

Overview

•The US Treasury announced a surprise increase in the size of long-term bond buybacks for bonds aged 10-30 years to at least 4 billion dollars per operation, up from 2 billion dollars.
•The US Treasury's bond buyback program will be effective from September 9 to November 4.
•The US Treasury's action caused US bond yields, particularly those aged 10 years and above, to decline.
•The US dollar weakened to its lowest level in 3 months, and the Thai Baht strengthened to approximately 32.8 Baht/Dollar.
•Risk indicators including VIX, MOVE, and Credit spreads in High yield instruments decreased, improving global risk sentiment.
•Trinity Securities notes that the Thai stock market may see positive movement led by the electronics sector, though rapid Baht appreciation might limit buying strength.
•Trinity Securities recommends a 'Buy on weakness' strategy for the SET Index, highlighting High beta stocks such as HANA, KCE, DELTA, CK, STECON, PYLON, SEAFCO, AMATA, and WHA.

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Key Entities

Organization

Trinity Securities(บล.ทรีนีตี้)

The securities firm that provided the market analysis and investment strategy.

US Treasury(กระทรวงการคลังสหรัฐฯ)ℹ️

The US government body that announced the increase in long-term bond buybacks.

TTB

A company that conducted a Placement, contributing to net selling in the stock market.

HANA

An electronics company identified as an interesting investment in the High beta group.

KCE

An electronics company identified as an interesting investment in the High beta group.

DELTA

An electronics company identified as an interesting investment in the High beta group.