10-year bond yield at two-month low
Bonds climbed, sending the benchmark 10-year yield to a two-month low, as overseas investors boosted holdings following the Federal Reserve’s decision to refrain from scaling back stimulus.
Data from the Thai Bond Market Association show global funds bought $2.1 billion more Thai debt than they sold in the three days after a Fed meeting concluded on Sept 18, with net purchases reaching a record $1.2 billion on Sept 20. Economists surveyed by Bloomberg had forecast a $5-billion reduction in the Fed’s $85 billion of monthly bond buying, which has spurred demand for emerging-market assets.
‘‘Fund inflows from overseas are sending the Thai yields lower,’’ said Tomoko Yamaguchi, vice-president of Bangkok Treasury Department at Mizuho Bank. ‘‘Asia, including Thailand, has seen fund outflows since May, but investors are putting money back again triggered by the postponement of reduction in the stimulus. In addition, there will be no bond auctions in October, dragging bond yields down.’’
The yield on the 3.625% bonds due June 2023 fell 16 basis points to 3.88%, the lowest level since July 26.