Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Thailand’s Bonds Rise as IMF Cuts Growth Outlook; Baht Steady

Oct. 9 (Bloomberg) -- Thailand’s government bonds advanced after the International Monetary Fund cut its global growth forecast, citing Europe’s worsening debt crisis and weaker U.S. expansion. The baht was little changed.

The world economy will grow 3.3 percent this year, the slowest since the 2009 recession, compared with a July prediction of 3.5 percent, the Washington-based lender said today. International investors purchased $455 million more local sovereign notes than they sold this month through yesterday, according to data from the Thai Bond Market Association.

“There’s good appetite for assets in Asia where the growth is relatively stronger than developed nations, providing the room for currencies to gain,” said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. “But investors don’t want to take risks aggressively and the funds are flowing more to bonds rather than stocks, supporting the regional debt markets.”

The yield on the 3.25 percent notes due June 2017 dropped two basis points, or 0.02 percentage point, to 3.28 percent as of 3:07 p.m. in Bangkok, according to data compiled by Bloomberg.

The baht was little changed at 30.66 per dollar, according to data compiled by Bloomberg. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 4.27 percent.

Asia’s developing economies will expand 6.7 percent this year, compared with a July estimate of 7.1 percent, according to the IMF. The Asian Development Bank and the World Bank also lowered their growth estimates for the region this month.

To contact the reporter on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.