Baht, bonds up on signs of China recovery
- Published: 31 Oct 2012 at 12.21
- Online news:
Thailand's baht and government bonds headed for monthly gains as signs of a pickup in China's economy helped improve demand for regional assets.
Global funds bought US$1.9 billion more local sovereign debt than they sold this month, according to data from the Thai Bond Market Association. Reports this month showed exports and investment gathered pace in China, the biggest buyer of goods shipped from Thailand. The Southeast Asian country's overseas sales rose 0.2% in September after a 7% drop in August, data showed on Oct 24. Ten-year bonds yield 3.33% in Thailand, compared with 1.74% in the United States.
"Funds are flowing into Asia as its economy is more solid than other regions and still offers higher yields than developed nations," said Tsutomu Soma, manager of the investment trust and fixed-income business unit at Rakuten Securities Inc in Tokyo. "Fund inflows are supporting regional currencies."
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