Halister News

(Bloomberg) -- UBS Asset Management steps up investments in Thai bonds as year-long mourning period for late King Bhumibol Adulyadej may damp Thailand’s economic recovery and boost chances of a BOT rate cut.

• A rebound in yields, with 10-year sovereign rising above 2.1% from this year’s low of 1.513% in April, also enhances appeal of local debt securities, Ashley Perrott, Singapore- based head of Asian fixed-income at UBS Asset, said in an interview on Wednesday
• “We increased exposure in bonds a little bit slightly after the King’s news,” Perrott says
• Slow business activity would be supportive for “potential easing of the policies for the Bank of Thailand”
• BOT is expected to maintain policy rate for rest of 2016 to assess the economy, says Perrott, who oversees about $3.5b
  • BOT has room to cut rates if necessary to boost the economy
• NOTE: Prime Minister Prayuth called on the nation to avoid “joyful events” for 30 days and observe a year of mourning following King Bhumibol Adulyadej’s death on Oct. 13.
• NOTE: BOT may keep policy rate unchanged at 1.50% on Nov. 9, according to all 10 economists in Bloomberg survey