Thai bonds suffered their biggest monthly foreign outflows since March as surging Treasury yields and the prospect of interest-rate hikes dimmed the appeal of the nation’s debt. Global funds pulled a net $635 million from Thai bonds in September, the most in six months. They also withdrew $781 million from local stocks.
Government bonds worldwide posted their worst quarter since 2024 as $100 oil revived the threat of sticky inflation. The selloff widened the Thai 10-year yield’s discount to its US counterpart to 298 basis points, close to a record. In Thailand, faster inflation is also prompting traders to increase bets for the nation’s first rate hike in three years.
Baht swaps are pricing 42 basis points of increases over the next 12 months, up from 25 basis points at the end of August.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing