U.S. President Joe Biden on Saturday withdrew his threat to veto a $1.2 trillion bipartisan infrastructure bill unless a separate Democratic spending plan also passes Congress, saying that was never his intent. Moments after announcing the bipartisan deal on Thursday, Biden appeared to put it in jeopardy with his comment that the infrastructure bill would have to move in "tandem" with a larger bill that includes a host of Democratic priorities that he hopes to pass along party lines. He said of the infrastructure bill on Thursday that "if this is the only thing that comes to me, I’m not signing it." Those comments sparked criticism from some Republican lawmakers who were party to the deal and accused the president of making new demands.
BOJ was confident in June meeting of recovery as vaccination proceeds
Bank of Japan policymakers hoped that accelerating coronavirus vaccinations would prop up the economy, but saw any inflationary
pressures as subdued given the fragile recovery, a summary of their debate at a June 17-18 meeting released on Monday showed. Japan has only recently emerged from a fourth wave of infections. A decline in the pace of new cases and a pick-up in vaccinations
prompted authorities to ease a state of emergency in Tokyo and eight other prefectures on June 20. "A positive economic cycle is
kicking off in Japan due to progress made in vaccinations," one of the nine board members was quoted as saying. The upbeat assessments underscore the BOJ's view the economy will emerge from the doldrums on robust exports and a pick-up in domestic demand, without needing additional monetary support.
UK inflation pressure could keep on building in 2022 - BoE's Haldane
Bank of England Chief Economist Andy Haldane said the central bank's new forecast that inflation will breach 3% could prove too
low and price pressure could accelerate not only this year but in 2022 as well. Haldane, who cast the lone vote in favour of for scaling back the BoE's bond-buying programme at his last monetary policy meeting this week, told MoneyWeek magazine that he disagreed with his colleagues about when inflation would start to ease. Britain's consumer price inflation hit 2.1% in May, adding to worries about a global pickup in inflation that could force central banks to reverse their emergency coronavirus stimulus programmes
earlier than previously thought. The BoE said on Thursday that its policymakers now expected British inflation to peak above 3%, up
from a previous estimate of 2.5% but most of them thought the acceleration would be temporary and their stimulus remained necessary for now.
Dollar Up Despite Softer-Than-Expected Inflation Data
The 10-year government bond yield (interpolated) on the previous trading day was 1.81, -2.00 bps. The benchmark government bond yield (LB31DA, 10.5 years) was 1.775, -2.00 bps. LB31DA could be between 1.75-1.82. Meantime, the latest closed US 10-year bond yields was 1.54%, +5.00bps. USDTHB on the previous trading day closed around 31.76 Moving in a range from 31.80-31.91 this morning. USDTHB could be closed between 31.85-31.93 today. Meantime, The dollar was up on Monday morning in Asia although the U.S. inflation data was slightly softer than expected. Investors remained concerned about a tightening monetary policy if the consumer price pressures continue to intensify.
Sources : Bloomberg, CNBC, Investing, CEIC
