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Inflows into Thai bond market defy oil shocks

Inflows into Thai bond market defy oil shocks

10 Sept 15:00 Key points summarised by AI
  • Foreign investors injected 30 billion baht into Thai government and central bank bonds in H1, defying global economic uncertainty and oil shocks, partly driven by capital outflows from Indonesia.
  • Investor confidence in Thailand is bolstered by affirmed credit ratings, and its low foreign ownership in government bonds provides stability against significant capital flight.
  • Thailand's persistent fiscal deficits necessitate a high supply of government bonds, including new 'AomPlus' savings bonds, which will push public debt close to 70% of GDP to fund economic relief and energy transition.
  • While the central bank's policy rate is expected to remain at 1%, bond yields may slightly increase, and investors are advised to monitor potential corporate bond defaults amidst a K-shaped economic recovery.
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Economy 1/1
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