Bangkok Post

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.

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