Thailand's government bonds advanced on speculation the country's improving economy will lure inflows from overseas investors. The baht was little changed.
The Ministry of Finance said on March 29 that it raised its 2013 growth forecast to 5.3% from 5% because of increased private consumption. Foreign funds pumped a net US$4 billion into local debt and stocks in the first quarter, Bank of Thailand assistant governor Paiboon Kittisrikangwan said the same day, driving a 4.3% gain in the baht against the dollar this year, the best performance in Asia.
"Bond yields will remain under downward pressure and the baht will stay on a gradual appreciation path as fund inflows will probably continue," said Shigehisa Shiroki, chief trader on the Asian and emerging-markets team at Mizuho Corporate Bank Ltd in Tokyo.
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