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BlackRock Bullish on Thai Bonds, Region’s Worst: Southeast Asia

BlackRock Inc. is bullish on Thai bonds, Asia’s worst-performing in 2012, saying the central bank has room to ease monetary policy as a global slump cools demand for exports from Southeast Asia’s second-largest economy.

Thai government debt returned 2.1 percent this year, the least among 10 Asian countries tracked by HSBC Holdings Plc together with Taiwan’s, compared with 6.1 percent for India and 5.9 percent for Indonesia, the best performances. Consumer-price gains have stayed below 3 percent for the past four months, while the central bank has kept its benchmark interest rate at 3 percent since cutting it by 25 basis points in January.