Krungthai Bank recommends investors gradually buy long-term US government bonds after the 10-year yield rose continuously to 4.68% amid inflation risks and Federal Reserve policy uncertainty. Poon Panichpibool, a money and capital market strategist at Krungthai GLOBAL MARKETS, said that although the Fed held rates as expected and did not clearly signal further hikes, causing short-term yields to fall, long-term yields rose on inflation concerns and higher oil prices. He advises buying when the US 10-year yield exceeds 4.50%, as the Fed is expected to hold rates in 2026 before cutting twice in 2027, contrary to the latest dot plot and market views. For Thai bonds, the 10-year yield has fallen to 1.90% to 2.00%, which is fair value, reducing attractiveness, so buying is only recommended when yields rise. He views 20-year bonds as more interesting but requiring acceptance of high volatility. The baht is expected to move sideways around 33.50 per dollar, with resistance at 33.75 to 33.80 and support at 33.30 to 33.40, awaiting new factors from BOE and BOJ meetings, US PCE inflation, and Middle East tensions that continue to pressure the baht.
Krung Thai Bank Public Company LimitedKTB recommends buying US bonds, which may boost bond trading revenue and fee income for the bank.