Thailand 10Y Bond Yield Hits 35-month Low

Thailand’s 10-year government bond yield climbed to around 2.24%, hitting its highest level since February 2025 as foreign investors accelerated their exit from local assets. Global funds have dumped more than $1 billion of Thai bonds this month, on track for its largest foreign outflow since 2022, according to the Thai Bond Market Association. The selling intensified on Friday, when investors withdrew about $1.2 billion, the biggest single-day outflow since March 2022, while also offloading roughly $1.2 billion in equities, the steepest stock selloff in two years. The pullback reflects a broader retreat from emerging markets as escalating Middle East tensions fuel risk aversion, with surging oil prices stoking inflation concerns and worsening current-account pressures. Thai assets have borne the brunt of the shift, with local bonds delivering an 8.5% loss to dollar-based investors on a hedged basis in March, among the worst in the region, while equities have dropped more than 8%.

Thailand 10 Year Government Bond Yield increased to 2.24%, the highest since March 2025. Over the past 4 weeks, Thailand 10Y Bond Yield gained 28.90 basis points, and in the last 12 months, it decreased 1.60 basis points.

Thailand’s 10-year government bond yield retreated to around 1.74% after reaching its highest level since June last year, as expectations of further monetary easing tempered concerns over upcoming fiscal spending ahead of the February election. Bank of Thailand Governor Vitai Ratanakorn recently said rates could be cut further, though he noted that monetary policy alone cannot resolve structural issues. These expectations have eased pressure on long-term yields, which had previously risen amid worries about heavy debt-funded stimulus that dampened demand for longer-dated securities. Investors are closely watching the government’s borrowing plans and upcoming debt auctions, as elevated yields could raise financing costs and limit fiscal space. Broader challenges include US tariffs, southern flooding, border tensions with Cambodia, and the baht’s recent strength weighing on exports and tourism.