Thai 10-year bonds lure buyers as curve steepens to 110 basis points

Thailand’s longer-dated government bonds are drawing investors as the country’s yield curve becomes the steepest in emerging Asia. The gap between 10-year and two-year Thai bond yields has widened to nearly 110 basis points, close to the largest spread since November 2022, giving buyers more incentive to move into the long end. Investors see support from expectations that the Bank of Thailand will stay more dovish than regional peers, even as other Asian central banks tighten to defend currencies after shocks tied to the Iran war. Foreign investors have bought about US$342 million of Thai bonds this quarter, reversing part of roughly US$1 billion in net outflows recorded in March.