In Asia, investors are investing heavily here and not in India-China, know the two biggest reasons for this:

News Topical,Digital Desk : Thailand's bond market is heading towards the biggest monthly investment in the last three years. Thailand's currency, the Thai baht, which has strengthened due to expectations of interest rate cuts and rising gold prices, has helped in this. In a report, Bloomberg has quoted data from the Thai Bond Market Association and said that this month global funds have invested about $2 billion in local bonds, which is the highest since February 2022.

On the other hand, outflows have been seen in the bond markets of India and Indonesia during this period. Investors' interest in Thailand's assets has increased. Investors believe that it is somewhat safer than the uncertainty in the global markets.

Why is investment in Thai bonds increasing?
Last year, outflows were seen in bonds here due to political risks. But now this situation is changing. Quoting several economists, this report estimates that the central bank of Thailand may cut interest rates for the second time this year on Wednesday. Due to this, investors are investing rapidly to get high yield. Record high gold prices are also promoting local assets. Thailand is the main trade center of gold in Asia.

Gold exports from Thailand increased by 270% Experts say that the relationship between Thailand's bonds and US Treasury has gradually decreased, reducing the impact of market volatility. The excellent performance of gold has also made the Thai baht attractive to investors. Thailand has the most gold compared to its counterparts. Last month, its gold exports showed a growth of 270% year-on-year.

Preparations to overcome the tariff crisis The baht gained more than 2% after the announcement of US tariffs this month. Gold prices rose by about 7% during this period. Gold is seen as a safe investment option. The government here is also considering increasing its expenditure to support the economy and reduce the impact of US tariffs.

Risks regarding long-term bonds The report says that short-term bonds, which are more sensitive to interest rates, will remain safe from financial debt pressure in the medium term. Nomura Holdings strategist Albert Leung is also supporting this. He says that risk may remain in long-term bonds. Due to this demand, the yield on two-year government bonds reached its lowest level since 2022 in April.