The Bank of Thailand felt that a spike in long-term government bond yields had only a limited impact on the economy when it decided to keep its key rate at a record low last month, meeting minutes showed on Wednesday.
Long-term Thai bond yields moved in line with long-term US Treasury yields, the minutes said. Over the first quarter of 2021, 10-year Thai government bond yields rose 61.5 basis points, the sharpest quarterly rise in 12 years.
Most corporate bond issuers raised funds in the short maturity and could still do so as usual, while corporate credit spreads continued to decline, the minutes said.
On March 24, the BoT’s Monetary Policy Committee voted unanimously to leave the one-day repurchase rate at a record low of 0.50% for a seventh straight meeting after cuts in 2020 to support the economy hit by the coronavirus…
