HALISTER1: Foreigners Buy Thai Short-Term Debt After NFP: Bank of Ayudhya

Foreigners Buy Thai Short-Term Debt After NFP: Bank of Ayudhya

(Bloomberg) -- Global investors bought net 32.2b baht ($914.3m) of Thailand’s local bonds yesterday, most since Sept. 2013, according to TBMA data.
  • Most of those funds went to short-dated maturity of less than a year, and this probably indicates shift in portfolio position towards non-USD assets following disappointing U.S. jobs data, says Roong Sanguanruang, market analyst at Bank of Ayudhya, in an interview
  • Baht has some room to appreciate in the near term due to weak dollar sentiment
  • However, such inflows are not expected to last because there’s still scope for dollar to rebound as the Fed is expected to increase rates; sees at least one hike this year
  • Baht steady at 35.221 per dollar after reaching 35.190 earlier, strongest since May 11
  • Yield on 3.25% govt bond due June 2017 declines 1 bp to 1.455%
  • NOTE: Foreign funds have bought a net $6.14b of Thai bonds so far this year through to yday
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Roong Sanguanruang (Mitsubishi UFJ Financial Group Inc)

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