ThaiBMA says the credit spread on Thai corporate bonds is at its lowest in 6 years. Thai government bond yields rose less than US yields, and the 5-year AAA corporate bond yields 2.06% vs 1.80% for the government bond. Policy rate is 1.00%, and the market expects it to hold at the 28 October meeting. For a small business this is mainly background: large firms are borrowing cheaply through bonds and may compete for bank lending, so SME loan rates are not expected to fall much from this. Watch the baht, since US yields are pushing up Thai yields and foreign bond products carry currency risk.
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