Poon Panichpibool, money and capital market strategist at Krungthai GLOBAL MARKETS, Krungthai Bank, revealed that the US 10-year bond yield rose to 4.63%, driven by energy prices and uncertainty in the Middle East, leading the market to increase the probability of the Fed raising rates twice this year to 54%. KTB continues to recommend gradually buying long-term US and Thai bonds when yields exceed 4.50%, with the view that the Fed will hold rates in 2026 before cutting twice in 2027, contrary to the Dot Plot and forecasts from major financial institutions. As for Thai 10-year bonds, with yields falling to the 1.90% to 2.00% zone, which is fair value, they have become less attractive and should only be bought when yields rise. Thai 20-year bonds are more appealing but come with higher volatility. On the currency front, the dollar strengthened in line with bond yields, and the yen weakened past 163 yen per dollar, pushing the DXY index up to 101.1 points. Meanwhile, COMEX gold for August 2026 delivery rose near 4,100 dollars per ounce, supported by buy-on-dip demand and news of US-Iran ceasefire talks, despite pressure from a stronger dollar and higher yields.
Krung Thai Bank Public Company LimitedArticle discusses bond yield and Fed rate expectations, which may affect KTB's bond portfolio but no direct impact on the bank itself.