Dallas Fed President said on Monday that it is possible the U.S. central bank could raise interest rates before the end of 2022, reaffirming the projection he made during the March policy-setting meeting. The U.S. labor market has a "good chance" of being at full employment by then and of having inflation at the central bank's 2% target, Kaplan said. Kaplan repeated his view that he would support trimming back the central bank's asset purchases sooner rather than later, and said the Fed would want to "telegraph" those plans in advance to give the market plenty of notice. Inflation readings, which increased in recent months because of imbalances caused by the pandemic, should decline in the fall, Kaplan said. But some measures could remain elevated by year-end if some of the disruptions persist, he said.
China to relax birth policy but wary of social risks, sources say
China will tread carefully in relaxing its birth policies for fear of harming social stability, even as the latest census highlights the
urgency to address the country's declining birth trends and ageing population, policy sources said. Expectations for birth policy
reforms are rising after the 2020 census last week showed China's population grew at its slowest in the last decade since the 1950s
as births declined and ageing accelerated. A fertility rate of 1.3 children per woman in 2020, on par with ageing societies like Japan
and Italy, underscores the risk for China: the world's second-biggest economy may already be in irreversible population decline
without having first accumulated the household wealth of G7 nations.
EU eyes another go at more unified European business taxation
The European Commission wants to propose in 2023 a more unified way of taxing companies in the European Union, hoping that
such rules, which have failed to win support in the past, will stand a better chance if they follow global OECD solutions expected this
year. The Organisation for Economic Cooperation and Development (OECD) is to agree in June on global rules on where to tax large
multinational corporations like Google, Amazon, Facebook, Apple or Microsoft and at what effective minimum rate. The deal is aimed
at stopping governments competing with each other through lowering tax rates to attract investment and at creating a way to tax
profits in countries where the customers are rather than where a company sets up its office for tax purposes.
Dollar inches lower as Treasury yields hold firm
The 10-year government bond yield (interpolated) on the previous trading day was 1.77, -1.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.78, -2.00 bps. LB29DA could be between 1.76-1.80. Meantime, the latest closed US 10-year
bond yields was 1.64%, +1.00bps. USDTHB on the previous trading day closed around 31.45 Moving in a range from 31.45-31.51
this morning. USDTHB could be closed between 31.47-31.54 today. Meantime, The dollar edged lower on Monday as inflation jitters,
exacerbated by record high prices paid in a regional U.S. manufacturing survey, benefited riskier currencies at the greenback's
expense.
Sources : Bloomberg, CNBC, Investing, CEIC
