Bonds advance, baht weakens
- Published: 20 Sep 2012 at 11.05
- Online news: News
Thailand's three-year government bonds advanced and the baht retreated from near a five-month high before data that economists predict will show declining overseas sales.
Exports fell 5.9% in August, the biggest slide this year, after a drop of 4.5% in July, according to the median estimate of analysts in a Bloomberg survey before a government report due Sept 24 or Sept 25. International investors pumped US$658 million into sovereign notes this week through yesterday, according to data from the Thai Bond Market Association. Three-year debt from the Southeast Asian nation yielded 2.87 percentage points more than Treasuries.
"Exports are a concern amid weak global demand," said Tsutomu Soma, manager of the investment trust and fixed-income business unit at Rakuten Securities Inc in Tokyo. "Bonds in Asia will probably receive a lot of funds due to their relative safety and higher yields."
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