Bad News Weighs on Baht But Thailand’s Bonds Are Re-Energized

(Bloomberg) — Anti-government protests and renewed concern about the virus’s impact on the economy are making the Thai baht one of the region’s worst-performing currencies. When it comes to the nation’s bonds, things are looking more positive.

The baht has suffered since protesters last month held the biggest demonstration since the military’s coup in 2014, and called for a general strike to put further pressure on the government. Optimism about the potential reopening of the country to tourism also received a setback in September as the detection of a locally transmitted virus case ended a run of 100 days without any transmission.



chart: Difference between onshore and offshore baht levels has been growing


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Difference between onshore and offshore baht levels has been growing

The pressure on the local currency can be seen in the widening yield difference between offshore and onshore forwards, which has expanded to a 60 basis-point premium from a 40 basis-point discount in July. The differential

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