Market Summary

Yield Movements

Thailand's local currency (LCY) government bond yield curve steepened between 1 September and 31 October. Yields edged down at the short end of the curve on expectations that the Bank of Thailand will resume monetary policy easing in December, while longer-term bond yields rose on heightened risks and expectations of an increase in the supply of bonds as the government finance its new stimulus programs.

Local Currency Bond Market Size and Issuance

Thailand's LCY bond market rebounded in the third quarter (Q3) of 2025, supported by increased issuance from the private sector. LCY bonds outstanding (THB17.6 trillion) gained 2.5% quarter-on-quarter (q-o-q), reversing the 1.0% q-o-q decline in the previous quarter. LCY bond issuance rose 2.6% q-o-q to THB2.2 billion, buoyed by increased corporate debt sales as several companies issued new bonds to refinance maturing debt. Corporate bond issuance jumped 8.7% q-o-q to THB370.2 billion, while government bond issuance declined 16.5% q-o-q to THB513.7 billion.

Sustainable Bond Market

Sustainability-linked instruments led issuance growth in Thailand's sustainable bond market in Q3 2025. Thailand's sustainable bond market reached USD27.6 billion at the end of September on robust expansion of 4.7% q-o-q. Sustainability bonds remained the most dominant bond type, accounting for 58.0% of total sustainable bonds, followed by sustainability-linked bonds with 22.1%. About 71% of new issuances in Q3 2025 were sustainability-linked bonds from both public and private sector issuers.