Market Summary

Yield Movements

Between 3 March and 30 May, Thailand's local currency (LCY) government bond yields fell for all maturities amid monetary policy easing by the Bank of Thailand (BOT). On 30 April, the BOT reduced its policy rate by 25 basis points to 1.75%, noting that the growth outlook faced further risks from global trade tensions.

Local Currency Bond Market Size and Issuance

The LCY bond market reached a size of THB17.4 trillion at the end of March, growing 1.8% quarter-on-quarter (q-o-q) in the first quarter (Q1) of 2025 versus a nominal 0.1% q-o-q contraction in the prior quarter. LCY bond sales rebounded, rising 2.4% q-o-q to THB2.1 trillion in Q1 2025 after a 5.7% q-o-q decline in the previous quarter, driven by increased issuance of government and BOT bonds. Meanwhile, corporate bond sales continued to contract, falling 2.5% q-o-q in Q1 2025 amid heightened uncertainty over the economic growth outlook.

Sustainable Bond Market

Thailand's sustainable bond market rose 1.0% q-o-q to USD24.3 billion at the end of March. Sustainability instruments were the predominant bond type, comprising 64.8% of the total. About 66.7% of all outstanding sustainable bonds were issued by the public sector. Over 60% of outstanding sustainable bonds had a remaining tenor longer than 10 years, resulting in a size-weighted average tenor of 8.6 years at the end of March.