Govt bond yield near 2-year low | Bangkok Post: Most recent

Most Recent >

Govt bond yield near 2-year low

- +

Thailand's three-year government bond yield was near a two-year low after international investors added holdings amid speculation the central bank will keep borrowing costs low this year. The baht held steady. 

Global funds bought US$133 million more sovereign notes than they sold in the first two days of this week, while cutting holdings of local stocks by a net $150 million, data from the Thai Bond Market Association and stock exchange show. Inflation slowed to 3.32% in October from 3.38% the previous month, according to a Nov 1 official report. The Bank of Thailand, which cut its benchmark interest rate by a quarter percentage point to 2.75% on Oct. 17, next reviews monetary policy on Nov 28 .

"Thai bonds are supported by fund inflows from overseas as inflation was lower than expected and rates are expected to stay low," said Wee-Khoon Chong, a strategist at Societe Generale SA in Hong Kong. "Also, there’s a possible asset allocation shift out of Thai equities into bonds."

Keep up-to-date with the latest on coup d'etat with Bangkok Post SMS News. Call *451391000 to subscribe – 39 baht/month (7 days free, available in Thailand only) Bangkok Post SMS News: Deliver only trustworthy news on SMS

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

0 people commented about the above

Readers are urged not to submit comments that may cause legal dispute including slanderous, vulgar or violent language, incorrectly spelt names, discuss moderation action, quotes with no source or anything deemed critical of the monarchy. More information in our terms of use.

Please use our forum for more candid, lengthy, conversational and open discussion between one another.

  • Latest
  • Oldest
  • Most replied to
  • Most liked
  • Most disliked

    Click here to view more comments