MFC issues a fund to invest in US government bonds.

Bangkok, MFC Asset Management expects the Fed to reduce interest rates in the second half of 2024. The baht is likely to strengthen. Prepare to launch a new fund to invest in US government bonds with remaining maturities of no more than 1 year, emphasizing high stability. low risk Mr. Thanachot Rungsitthiwat Managing Director MFC Asset Management Company or MFC revealed that debt instruments are still interesting assets to invest in in 2024 and are an opportunity to invest in US bonds. From the latest meeting of the Federal Reserve (FED), it is expected that the policy interest rate will remain at 5.25 - 5.50% and will likely maintain the interest rate. Makes price fluctuations less In addition, the yield on US government bonds Compared to Thai government bonds It has the widest interest spread and is expected to remain so for the next 12-24 months. As for the direction of the baht's value in 2024, it is seen that it is likely to strengthen. As the Fed has signaled that it will not raise the policy interes t rate further. If the Fed doesn't want the economy to slow down or have a recession, the Fed may have to cut some of its policy interest rates. It is expected that this may happen in the second half of 2024. However, it is expected that if the Bank of Thailand (BoT) cuts Thailand's policy interest rate before the United States. In order to stimulate the economy along with the government's fiscal policy, the baht will likely weaken as well. In addition, other risk factors That may cause the baht to depreciate further, such as drought, which affects the income of the agricultural sector and the cost of living of the general public, which may cause the BoT to decide to reduce the policy interest rate. Including a war that may cause most investors to change their holdings of the US dollar. Therefore, exchange rate management guidelines will be based on fundamental factors. together with the factor of currency movement It reduces hedging when the value of the baht has both factors combined in a weakening directi on and increases hedging when the baht has both factors combined in the direction of strengthening to provide an opportunity. invest MFC Asset Management Co., Ltd. Ready to open for sale MFC US Treasury Bill (M-USTBILL) has a policy to invest in government debt instruments such as treasury bills, bonds issued by the United States government with a remaining maturity of not more than 1 year and/or mutual funds. ETF (ETF) or investment unit of a mutual fund that invests in US government bonds with a remaining maturity of not more than 1 year. The fund has level 3 risk (moderately low risk) and is certified by the US government, so there is a very low chance. In default of payment of debt It also receives issuer credit ratings (Moody's AAA, SandP AA+ and Fitch AA+). Mr. Thanachot stated that the M-USTBILL fund is suitable for investors who want to focus on investing in government debt instruments issued by the United States government. For a period of approximately 6 months or more and investors who want to di versify their investments abroad with high interest rates and low risk. Those interested in investing can reserve for the first and subsequent minimum purchases of only 1,000 baht. Open for initial public offering (IPO) from 2-7 February 2024. Source: Thai News Agency