More than 123 billion baht of foreign capital has exited the Thai bond market since Russia attacked Ukraine, part of a flight to the US dollar market, according to the Thai Bond Market Association (TBMA).
Sirinart Amornthum, TBMA’s senior vice-president, said from the start of the war on Feb 24 until March 28, foreign investors recorded net sales of more than 123 billion baht of Thai bonds.
The market saw an outflow of 100 billion baht in March as sentiment was further pressured by the US Federal Reserve’s interest rate hike.
Poon Panichpibool, a market strategist at Krungthai Bank, said the foreign funds will return to the Thai bond market in the second half of the year when the economy starts to recover, the Fed has a clearer direction for its monetary policies, and the war situation starts to improve.
Meanwhile, the 10-year Thai government bond yield has risen…
