Poon Panichpibool, market strategist at Krungthai Global Markets, Krungthai Bank, said the 10-year US Treasury yield climbed to 4.73% after concerns over the Middle East situation led market players to raise the probability of a Federal Reserve rate hike, while worries about the outlook for US government and private sector bond issuance, especially AI-related companies, added further pressure on long-term US bonds. KTB maintains its recommendation to gradually buy long-term US and Thai bonds because it expects the Fed is likely to hold rates in 2026 before gradually cutting twice in 2027, while the Bank of Thailand may keep rates unchanged throughout this year and next. The latest 10-year US Treasury yield is considered reasonably high and can cushion the risk if the Fed actually hikes rates around two to three times. On currencies, the dollar index rose to around 99.6 points, while gold prices climbed to around 4,475 dollars per ounce.
Krung Thai Bank Public Company LimitedKTB's strategist comments on US yields and Fed policy, but no direct impact on the bank's operations.
US bond yields surged to 4.73% on Fed hike expectations and supply concerns, indicating higher yields.
