MARKET TALK: Most Thai Govt Bonds Tad Up; Wed Auctions Eyed

Thai government bonds mostly edge higher in lackluster trade amid an absence of fresh leads. "Investors now have a plenty of investment options as many corporates are offering bonds, so their interest in the government papers wanes," says a bond dealer. Investors are eyeing results of the government bond sale of THB16 billion due May 2015 and THB7.5 billion due June 2041 on Wednesday for potential trading cues. They will also focus on the Constitutional Court's ruling Wednesday as to whether two executive decrees, one which authorizes the government to borrow an additional THB350 billion for flood prevention measures, violates the constitution. Yields are expected to stick in a tight 2-3 bps range. The bid/offer yields for bonds due December 2015 are at 3.175%/3.165% from 3.18%/3.16% late Monday, the June 2017 yield is at 3.23%/3.21% from 3.24%/3.20% and the December 2021 yield is at 3.37%/3.32% from 3.36%/3.32%.