2012.07.05 05:57:18 MARKET TALK: Thai Govt Bonds Mostly Down; Focus On ECB Decision

0357 GMT [Dow Jones] Most Thai government bonds are lower as some
interbank players trim their positions ahead of the ECB decision, due
later in the global day. An aggressive easing move by the ECB could
improve global risk appetite and bolster demand for assets in emerging
markets including Thai equities and bonds. "The market has somewhat
priced in the possibility of monetary easing by the ECB. As the
decision draws nearer, some participants are choosing to reduce their
exposure, fearing that an absence of any positive surprises could lead
to a selloff," says a bond trader. However, yields will likely move in
a tight 2-3 bps range Thursday as other players are also looking to
buy on dips. Besides the ECB, investors are also eyeing the U.S.
nonfarm payrolls data due Friday for potential cues. The bid/offer
yield for bonds due December 2015 is at 3.295%/3.280% from
3.280%/3.260% late Wednesday, the June 2017 yield is at 3.395%/3.375%
from 3.380%/3.350% and the December 2021 yield is unchanged at
3.550%/3.530%. (phisanu.phromchanya@dowjones.com)


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(END) Dow Jones Newswires

July 04, 2012 23:57 ET (03:57 GMT)