Kaohoon Morning Brief – 22 August 2023

1) FSS expects a positive session for SET Index as a new government will be formed

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a positive direction within the range of 1,535-1,540 points, boosted by the PM voting this afternoon after the Pheu Thai Party was able to team up with other allies for a total of 314 votes as expected. The voting should be done by today to settle the three-month long political deadlock. This should boost investors’ sentiment and confidence in bringing back inflows.


2) Ousted Thai PM Thaksin Shinawatra lands in Bangkok after 15 years of exile

Former Thai Prime Minister Thaksin Shinawatra landed at Suvarnabhumi Airport, Bangkok, Thailand on 22 August 2023 after 15 years of exile over political charges.

Thaksin was ousted in 2006 by a military coup and has lived in exile to avoid legal charges that he claims to be wrongfully motivated by Thai politics. He mainly stays in Dubai and England during his absence.

The police said that Thaksin will be arrested upon his return to Bangkok for his charges and taken directly to the Supreme Court for a hearing. He will then be transferred to a prison.


3) US 10-year bonds hit 16-year high as selloff resumes

The U.S. bond-market selloff resumed as 10-year Treasury yields soared to a 16-year high and real yields hit the highest level since 2009.

The 10-year Treasury yields climbed on Monday by more than 9 basis points to 4.35%, a level not seen since 2007. Meanwhile, The 2-year Treasury yields rose 6 basis points to 5%.

Rising real yields reflect a firmer economy and higher deficits.

Investors are awaiting further signals from the Fed policymakers, including the central bank’s annual Jackson Hole symposium and Chairman Jerome Powell later this week for the directions of monetary policy.