Thailand 10Y Yield Nears 4-Month Low

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Thailand's government bond yield fell to around 1.94% in early July, nearing its lowest level in four months, after the Bank of Thailand reaffirmed its accommodative policy stance. Minutes from its June meeting indicated policymakers would keep interest rates unchanged until the economy returns to its potential growth rate of at least 2.7%. The central bank said current monetary settings continue to support the recovery, with inflation contained within its 1%–3% target range and no immediate need for tightening. However, officials reiterated that rate hikes could be warranted if inflation becomes unanchored, financial stability risks intensify, or the economy reaches its growth potential. The BOT expects the economy to grow 2.3% this year before slowing to 1.8% in 2027, while warning that inflation risks persist from a potential El Niño event and geopolitical tensions in the Middle East.
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