Foreign Inflows Into Thai Bonds Wobble as Political Risks Grow.

Foreign investors may be less interested in Thailand's sovereign bonds due to increasing political risks and the possibility of tighter monetary policy. The recent removal of Prime Minister Srettha Thavisin by the Constitutional Court has led to a significant outflow of $244 million from the nation's bond market. Additionally, forecasts for rate cuts in other Asian countries are making their sovereign bonds more appealing compared to Thai debt. This shift in sentiment is reflected in the decline of Thai stocks and the underperformance of the baht. However, some experts believe that the foreign inflows into Thai bonds may be temporary and could be influenced by the upcoming Jackson Hole symposium. [Extracted from the article]