Halister News

(Bloomberg) -- Baht declines; five-year credit-protection costs for Thailand fell 3 bps yesterday to 104 bps, lowest daily close since July 2015, according to CMA data.

• State enterprise policy committee approves investment in infrastructure projects including 44.2b baht rail project in Bangkok’s suburbs
• Baht down 0.2% to 35.170 per dollar
  • USD/THB momentum studies turning higher, a move today above 21-DMA at 35.202 could be bullish signal; click here for chart
• The new 5-year benchmark bond to be auctioned tomorrow should see reasonable demand from onshore investors while offshore interest will hinge partly on USD/THB, ANZ analysts write in note; sees yield cut-off in 1.70%-1.75% area
  • On valuation, the picture is mixed; 5-year bond is cheap relative to swap but rich along the curve
  • Further yield compression is likely to be more modest going forward, hinging on whether global risk sentiment worsens
• International funds were net sellers of 1.9b baht ($54.4m) in Thai bonds yesterday, according to Thai Bond Market Association data; net buyers of $17.4m in country’s equities, according to exchange data
• Yield on 3.85% govt bond due Dec. 2025 steady at 1.892%