Negotiations with U.S. President Joe Biden over a potentially massive infrastructure investment package are inching forward even though disagreements remain over the size and scope of such legislation, Republican Senator Shelley Moore Capito said on Sunday. Capito leads a group of six Senate Republicans who have been in regular contact with Biden and White House aides over a bill the administration wants to move through Congress promptly. The Republican senators have proposed $928 billion to improve roads, bridges and other traditional infrastructure projects. Much of the funding would come from money already enacted into law for other purposes that they argue is unused. However, the Biden administration's latest offer in negotiations is for $1.7 trillion and would include federal spending on projects that go beyond traditional infrastructure, such as home care for the elderly.
How will China's latest oil probe affect the world's biggest crude importer?
Last Tuesday, the country's top economic planning agency gave five state-owned companies just two days to report on their historic
use of imported oil, part of a broader effort by the world's largest oil importer to control inbound shipments as domestic supplies
swell. Beijing is looking into whether Sinopec Group, China National Offshore Oil Corp, Sinochem Group, ChemChina, and China
North Industries Group - which together make up more than 60% of China's total imports - have resold oil to other companies in the
country. Also under examination is whether their imports have been processed at refineries under a tolling scheme that reduces the
companies' tax burden. China is expected to release a second batch of crude import quotas in the coming months, and these probes
may prompt Beijing to reduce allocated volumes to independent companies.
Japan's April factory output rises on capital goods demand
Japan's industrial output extended gains in April as manufacturers benefited from a recovery in appetite for capital goods, especially
in key overseas markets. Official data released on Monday showed factory output grew 2.5% from the previous month in April. The
rise in output was better than the previous month's 1.7% gain, but much weaker than a 4.1% advance forecast. In addition, Separate
data on Monday showed retail sales surged in April, thanks largely to favourable statistical base effects from a year earlier. However,
The world's third-largest economy is expected to grow in the current quarter at a much slower pace than previously thought after the
government extended coronavirus emergency measures in Tokyo and other major areas.
Dollar near 2-month high vs yen, U.S. inflation beats expectations
The 10-year government bond yield (interpolated) on the previous trading day was 1.85, +2.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.84, +3.50 bps. LB31DA could be between 1.81-1.86. Meantime, the latest closed US 10-year
bond yields was 1.58%, -3.00bps. USDTHB on the previous trading day closed around 31.25 Moving in a range from 31.20-31.28
this morning. USDTHB could be closed between 31.20-31.28 today. Meantime, The dollar held near a two-month high against the
yen on Monday after a key measure of U.S. inflation showed stronger price gains than expected, keeping alive expectations of an
eventual tapering in the Federal Reserve's asset buying.
Sources : Bloomberg, CNBC, Investing, CEIC
