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Aug. 4--Thai corporate bond investors are sticking firmly to the short end as concerns about domestic rate increases and trading liquidity make longer bonds look less appealing, dealers and fund managers said on Tuesday.
"We're interested only in bonds with at least AA ratings and no longer than two years," said a dealer at a foreign bank.
"But the problem is, no one wants to sell."
The market is expected to remain quiet in the next few weeks with investors staying on the sidelines ahead of the Bank of Thailand's meeting on interest rates on Aug 25, when its Monetary Policy Committee (MPC) meets.
"I believe the market will be deadly ...
Source: HighBeam Research, Short-term bond debt in demand, but Thai sellers are scarce.