10-yr bonds head for best week
- Published: 7 Dec 2012 at 10.46
- Online news: News
Thailand's 10-year government bonds headed for the best week since October on speculation the region's improving economic outlook and yield advantage over developed countries will attract investors. The baht gained.
The Asian Development Bank said on Friday that private consumption and investment are bolstering Southeast Asian economies even as the rest of the region is seen expanding less than earlier estimated. International funds bought US$391 million more local sovereign notes than they sold in the first two days of this week, according to the Thai Bond Market Association.
"Inflows into Asia will continue as the region's growth will accelerate, making it an attractive destination," said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. "Moreover, higher interest rates will bring in more funds, putting upward pressure on currencies."
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