Global bond selloff and foreign outflows push Thai 10-year yields higher
Bank of Thailand holds rate at 1% The Bank of Thailand kept its policy rate at 1% to support the economy, with low inflation and weak SME lending. This keeps short-term yields low and signals no imminent rate hike, which supports bond prices and limits how high the 10-year yield can go.
This is the starting point for the period and sets the low-rate backdrop that anchors Thai yields.
BOT Governor says rates can move either way The BOT Governor said the next move could be a hike or a cut, depending on data, and that low rates for too long carry risks. This keeps investors guessing but suggests no immediate tightening, which is mildly supportive for bond prices and keeps yields from spiking on policy fears.
It clarifies the policy stance and reduces the chance of a near-term rate hike, which matters for long-term yields.
Global bond yields surge after weak US buyback A smaller-than-expected US bond buyback sent global yields soaring. Thailand's 10-year yield jumped 60 basis points to 2.29%, tracking the global move. This directly pushes TH-10Y.GB yields higher, as global yields set the reference for Thai long-term borrowing costs.
It is the main event that drove Thai 10-year yields sharply higher in this period.
Foreign investors dump Thai bonds, outflows hit $635 million Foreign investors sold $635 million of Thai bonds in September, the most in six months, as US yields surged and rate-hike expectations grew. This selling pressure pushes Thai bond prices down and yields up, including the 10-year, as demand weakens.
It shows a concrete demand shock that directly lifts TH-10Y.GB yields.