Thailand's government bonds fell, pushing the 10-year yield to a one-month high, on speculation slowing growth and a rice-buying program will put a strain on the nation’s finances. The baht was steady.
Manufacturing production declined 3.5% in June from a year earlier, while exports fell 3.4%, according to official data released July 26. Both figures trailed median estimates in Bloomberg surveys. A potential increase in losses from the government's rice purchases could jeopardize the goal of balancing the budget by 2017, Moody's Investors Service said this month.
"Thailand's stretched fiscal position is in the spotlight," said Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd. "There is a focus on the strain from the rice-buying program."
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.