Baht steady, bonds advance
- Published: 28 Nov 2012 at 11.22
- Online news:
Thailand's 10-year government bonds advanced, pushing the yield to the lowest level in almost three weeks, after foreign funds boosted holdings of the country's debt before the central bank reviews interest rates on Wednesday afternoon.
Overseas investors bought US$318 million more sovereign notes than they sold yesterday, the most since Oct 30, according to Thai Bond Market Association figures. They pulled $38 million from local shares, exchange data show. The central bank will leave borrowing costs unchanged after cutting last month, according to a Bloomberg survey. Imports climbed 22% in October, the biggest increase in seven months, an official report showed this week.
"Investors want to put money in to countries where domestic demand is strong," said Hideki Hayashi, a researcher at the Japan Centre for Economic Research in Tokyo. "They still prefer bonds to stocks as external demand is still fragile."
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