Thai 32 bln baht, 9.84-year government bond auction avg accepted yield 1.9900%

Thailand conducted a government bond auction on July 1, 2026, offering a 32 billion baht, 9.84-year bond with an average accepted yield of 1.9900%. The auction result reflects continued investor confidence in Thai sovereign debt, despite recent market volatility. The yield is slightly above the 10-year government bond yield of 1.95%, which has declined by 0.36 basis points over the past month.

The Bank of Thailand has maintained an accommodative monetary policy, with policymakers indicating that rates will remain unchanged until the economy reaches its potential growth rate of at least 2.7%. The central bank expects economic growth of 2.3% in 2026, followed by a slowdown to 1.8% in 2027, while monitoring inflation risks from potential El Niño effects and geopolitical tensions.

The recent auction outcome suggests that the government continues to secure funding at relatively low rates, supporting fiscal stability amid external uncertainties. However, foreign outflows from Thai bonds remain a concern, with global funds withdrawing over $1 billion in July.