2012.05.02 06:15:08 MARKET TALK: Thai Govt Bonds Rise; Solid Auction Result Gives Boost

0415 GMT [Dow Jones] Thai government bonds are higher on follow-through buying by interbank players after a strong auction result. The MOF sells THB9 billion of bonds due December 2015 at a weighted average accepted yield of 3.4980% with solid bid coverage of 5.45X. "Bond demand, especially in three-year notes, are quite strong in the secondary market after many participants failed to get them at today's auction," says a bond dealer. However, profit-taking could limit the immediate upside. Focus is on the BOT's policy rate decision and accompanied statement due around 0730GMT for potential trading cues; most market participants expect the BOT to leave the rate unchanged at 3.00%. Yields are expected to hover around current levels. Thai markets were closed Tuesday for a public holiday. The bid/offer yield for bonds due December 2015 is at 3.46%/3.44% from 3.55%/3.52% late Monday, the June 2017 yield is at 3.57%/3.53% from 3.65%/3.60% and the December 2021 yield is at 3.78%/3.76% from 3.85%/3.80%%. (payungsak.wiriyabunditkul@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 02, 2012 00:15 ET (04:15 GMT)