Market Summary

Yield Movements

Between 1 June and 31 August, yields on local currency (LCY) government debt securities declined for most tenors, driven by moderating domestic inflation, weak economic growth, and the Bank of Thailand's accommodative monetary policy stance.

Local Currency Bond Market Size and Issuance

Thailand's LCY debt securities outstanding edged up 0.3% quarter-on-quarter (q-o-q) in the second quarter (Q2) of 2026 to reach THB18.2 trillion. Excluding debt securities with a tenor of 1 year or less, the LCY bond market expanded 0.4% q-o-q to THB15.4 trillion. Total LCY bond issuance declined 2.7% q-o-q to THB610.5 billion, capped by lower sovereign bond sales. Meanwhile, corporate bond issuance surged 36.0% q-o-q to THB233.7 billion, driven largely by refinancing activity in response to a large volume of maturing bonds and supported by favorable financing conditions.

Sustainable Bond Market

Thailand's sustainable bond market expanded 4.6% q-o-q to USD40.4 billion at the end of Q2 2026. Sustainability bond issuance totaled USD2.1 billion, led by sustainability-linked sovereign bonds (86.3%) and green bonds from the power generation and utilities sector (13.7%). At the end of Q2 2026, the size-weighted average tenor of outstanding sustainable bonds was broadly stable at 9.8 years, supported by longer-tenor sovereign bonds.