Emerging Asia’s Worst-Performing Bonds Are Set for More Losses
- Thai debt has handed dollar-based holders a 9% loss this year
- Auctions of 10-, 50-year bonds in June will test local demand
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Thai bonds have had a dreadful year so far and things may even get worse.
Government debt from the nation has handed dollar-based investors a loss of 9% in 2021 amid a resurgence in virus cases, and the vulnerability of the securities to expectations for Federal Reserve bond tapering. Reasons for further declines include rising debt supply and front-loaded issuance, while a slow pace of vaccination is likely to weigh on the baht and economic growth.