Idle excess cash in Thai banks fuelling sovereign bond rally
Kuala Lumpur
THAI banks awash with cash are propelling a record rally in sovereign bonds. With economic growth stuck below 3 per cent, that shows no signs of abating.
Baht-denominated sovereign notes have risen 2.9 per cent in March and are headed for an unprecedented ninth monthly gain, according to a Bloomberg index that goes back to the start of 2010. The debt has returned 6.3 per cent this year, second only to Indonesian securities in Asia, and the 10-year yield dropped to a record last week.
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