thai bond market update 10Mar2016

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THAI BOND MARKET WEEKLY REPORT Public Debt Management Office, Ministry of Finance, Kindom of Thailand Contact : Bond Market Development Bureau (02-271-7999)

HighLights ทิศทางเศรษฐกิจของ US เริม 5 มีทศ ิ ทางทีด 5 ข ี น ึ: ทัง: อัตราว่างงานลดลง อัตราเงินเฟ้ อเริม 5 ขยับขึน : ตัวเลขส่งออกและราคานํ: ามัน ทีป 5 รับตัวขึน : เป็ นปั จจัยทีท 5 ําให ้นักลงทุนคาดว่า FED อาจปรับขึน : อัตราดอกเบีย : อีกในเร็วๆนี: ทําให ้นักลงทุนมองหาตราสารหนี: : ได ้แก่ พันธบัตร BOT และขายพันธบัตรรัฐบาลทีม อายุสัน 5 อ ี ายุยาวกว่า

March 10, 2016

อัตราดอกเบีย : อ ้างอิงของพันธบัตรรัฐบาลอายุระหว่าง 10 - 20 ปี ลดลงอย่างต่อเนือ 5 งประมาณ 15 - 25 bps. เนือ 5 งจากความต ้องการ ในพันธบัตรรุน ่ อายุดังกล่าวสูงขึน : เนือ 5 งจากการปรับพอร์ทการลงทุนให ้สอดคล ้องกับปริมาณพันธบัตรในปั จจุบัน

Inflation Rate

MACRO DATA

Inflation Rate Core Inflation Nominal Inflation Forecast

Policy Rate

GDP Growth 0.50% 0.50% 0.05% -0.10%

American Interest Rate (Fed) British Interest Rate (BoE) European Interest Rate (ECB) Japanese Interest Rate (BoJ)

YoY(%) MoM(%)

0.59 0.07 -0.53 -0.26 0.10 - 1.00

2013 2014 2015

Source : MOC As of Jan 2016

2.90 0.70 2.80

Major World Currencies

Thai Policy Interest Rate

YTD

As of 10-Mar-2016

Next Meeting:

OIL (USD/Barrel)

2016

3.50 2.8-3.8 3.70

BOT NESDB FPO

3-Mar-2016

1,379.33 4,707.42 1,993.40 6,130.46

SET NASDAQ S&P500 FTSE100

GDP Forecast

1.50%

-1.3% -5.3% -0.8% 4.7% -0.8%

165.60

EQUITIES

Source : NESDB

Currency Avg. Selling Rate (THB) USD 35.6822 50.3935 GBP EUR 38.9549 JPY 31.5204 5.4925 CNY Source : BOT

INT'L RESERVE THAI (b.USD)

YoY(%)

37.07 34.57

BRENT WTI PRECIOUS METALS (USD)

Last Update : 5-Feb-2016

1,259.20 15.21

GOLD SILVER Source : Bloomberg

10-Mar-2016

PUBLIC DEBT DATA GOVT Debt Securities

Public Debt 6,005,124.74 THB Mil. Oustanding Debt GOVT - Domestic - Foreign FIDF

(THB Mil.)

Mutual Funds 2% Chg. from Dec-14

%

(THB Mil.)

3,414,586.24 3,333,269.45 81,316.79

57% 56% 2%

34,365.41 36,525.27 -2,159.86

995,790.81

17%

-3,000.00

SOE -G - NG

1,045,048.03 419,593.96 625,454.07

17% 7% 10%

323.44 -50.99 374.43

SFIs

532,268.78

8%

-2,203.27

17,430.88

1%

-127.19

6,005,124.74

100%

29,358.39

Others Total

GOVT Debt Portfolio

Classified by Type of Investors

44.36% %

Other 1%

Non- profit organization 1%

9

Contractual Funds 28%

Financial Institution 9%

128%

8.70 ATR

7

Duration

6

6.13

5

Depository Corporation 13%

Nominal Cost of Debt

4

NR 14%

3.81

3

Insurance Company 21%

2

ATM

ATR

MW Duration

Nominal Cost of Debt Source : PDMO as of Dec-15

Source : BOT as of Dec - 15

GOVT Bond Auction Schedule Q2/FY2016 Domestic Bond Market Classified by Issuer

Spread over T-1 Date

Tenor (Year)

Symbol

10 50 20 15 5 30 10 50 15 10

LB25DA LB666A LB366A LB296A LB206A LB446A LB25DA LB666A LB296A LB366A

Auction Amount (THB Mil.)

Total Allocated CB+NCB (THB Mil.)

14,000 10,000 10,700 10,000 24,000 10,000 13,000 10,000 10,000 10,000

14,000 10,000 10,700 10,000 23,779 10,000 13,000 -

Baht Bond 1%

120%

9.29

ATM

8

Bot 6%

Bond Market Cap. 140%

10

Household 5%

Source : PDMO as of Dec-15

% Share of GDP

ATM, ATR, Duration, Nominal Cost of Debt Government Debt Portfolio

Year / %

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

Debt to GDP =

Allocated CB (THB Mil.)

greenshoe

NCB (THB Mil.)

BCR

AAY (%)

Spread (bps)

1,675 1,100 500 -

1.42 3.59 1.51 1.43 5.10 2.62 2.87 -

2.6207 3.7590 2.9867 2.6938 1.6393 3.1589 2.0340 -

Min. (bps)

Max. (bps)

100% 100%

99% 80%

75%

60%

2,483,939

24%

40%

Asian Fin. Crisis

20%

783,992.72

12%

THB Mil

THB Mil.

Bank Loan /GDP

Equity/GDP

Bond Market / GDP

No.

Symbol

THB Mil.

Maturity Profile BOT vs GOVT Bond BOT ATM = 5mths GOVT ATM = 11yrs 3mths *End of Oct 2015

GoVT Bond 39 %

80% 15%

≤1

20%

15%

1<yr≤3

3<yr≤5

28%

32%

5<yr≤10

10<yr≤50

Source : ThaiBMA

3,779 -

-2.56 -11.18 -7.8 +4.38 -2.36 -18.80 -2.74 -

-6.6 -14.1 -11.5 +2 -2.8 -21.2 -2.7 -

-1.8 -10.4 -4.5 +7 -1.9 -16.7 -2.7 -

Top 5 Most Active GOVT Bond

BOT Bond 27%

2,698,924 10%

14,000 8,325 10,700 10,000 18,900 9,500 13,000 -

Source : ThaiBMA

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Oct-15 Nov-15 Dec-15

0%

24%

Corp Bond

6-Jan-16 13-Jan-16 20-Jan-16 27-Jan-16 10-Feb-16 17-Feb-16 2-Mar-16 9-Mar-16 16-Mar-16 30-Mar-16

3,964,193.5 3,964,193 4

1 2 3 4 5

LB196A LB206A LB21DA LB25DA LB176A

Outstanding Value (THB Mil.)

Total Trading Value (THB Mil.)

301,994 132,682 306,104 161,854 218,683

309,747 298,088 296,069 153,348 140,813

% of

Total Trading value

T/O (เท่า)

26% 25% 25% 13% 12%

1.03 2.25 0.97 0.95 0.64

Source : ThaiBMA (From Oct 1st,2015 to March 4th,2016)

THB Mil.

as of March 4th, 2016

th

Source : ThaiBMA (As of March 4 ,2016 )

GOVT Yield Curve Movement 5

MPC

3 yr

5 yr

10 yr

20 yr

50 yr

4

3.54% 50-yr 2.50% 20-yr

3 2

MPC 1

1.5%

1.95% 10-yr 1.64% 5-yr 1.48% 3-yr


BOND Forign Yield

SWAP

% 0.04

Interest Rate Swap IRS

THAI 0.03

US

0.02

UK

1-yr

2-yr

5-yr

7-yr

10-yr

US

%

0.72

0.77

1.09

1.31

1.56

EU

%

-0.14

-0.16

0.03

0.24

0.56

JAPAN

%

-0.07

-0.14

-0.11

-0.02

0.13

THAILAND

%

1.66

1.68

1.99

2.18

2.39

1-yr

2-yr

5-yr

7-yr

10-yr

JAPAN 0.01

EURO Cross Currency Swap CCS

0.00 3m

6m

2-yr

5-yr

10-yr

30-yr

-0.01 US

UK

THB/USD

%

1.650/1.590 1.570/1.420 1.380/1.250 1.390/1.210 1.480/1.210

EUR/CBS

Mid

-0.33

-0.39

-0.47

-0.48

-0.47

JPY/CBS

Mid

-0.64

-0.76

-0.98

-1.00

-0.93

EURO

JAPAN

Thailand

3M

6M

2yr

5yr

10yr

30yr

US

0.29%

0.48%

0.84%

1.33%

1.83%

2.65%

Credit Default Swap CDS

6M (bps)

1-yr (bps)

2-yr (bps)

5-yr (bps)

7-yr (bps)

10-yr (bps)

UK

0.47%

0.51%

0.47%

0.84%

1.45%

2.33%

US

21.08

21.67

22.48

23.35

30.04

40.61

EURO

-0.55%

-0.42%

-0.58%

-0.37%

0.19%

0.96%

UK

15.28

17.28

23.78

39.77

54.81

71.00

JAPAN

-0.07%

-0.14%

-0.20%

-0.19%

-0.04%

0.72%

JAPAN

9.30

14.29

22.00

48.65

70.27

91.35

THAILAND

1.40%

1.41%

1.47%

1.65%

1.95%

3.00%

THAILAND

38.06

41.55

63.62

147.67

176.44

200.53 th

th

Source : Reuters , Bloomberg (As of March 4 , 2016)

Source : ThaiBMA , Bloomberg (As of March 4 , 2016)

Non-Residence Trading NR Holding Weekly

Peers Comparison

THB.Mil.

Percentage share of Non-resident Holding in Local Government Bond

350,000

40%

Indonesia 300,000

2016

38.40% 38.40% Dec’ 15

250,000

Malaysia

93,249 30%

200,000

31.70% 31.70%

GOVT Bond -16,158 THB mil.

84,003

Dec’ 15

150,000

23,052 100,000

129,454 117,144

50,000

0

-50,000

30,216

-22,494

-2,793

BOT Bond 52,866 THB mil.

196,463

Thailand 20%

96,738

As of Feb 16

25,170

4,919

-1,598

29,642

6,087

-7,506

-53,807

-18,866

Korea -2,212

-100,506

-27,157

13.7%

21,608

10%

9.96% 9.96%

-71,124

Sep’15 Sep’15

Japan -37,994

-100,000

9.77% -150,000

Sep’ 15

2007 2008 2009 2010 2011 2012 2013 2014 2015 : -ขายสุทธิของนักลงทุนต่างชาติในตราสารหนี: BOT การซือ

Mar

Apr

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

Feb

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14

0%

Jan

2016

: -ขายสุทธิของนักลงทุนต่างชาติในตราสารหนี: GOVT การซือ

Thailand

Indonesia

Malaysia

Korea

Source : PDMO (As of March 4th, 2016)

Japan

Source : PDMO (As of March 4th, 2016)

BAHT BOND

86,109 THB Mil.

THE OUTSTANDING BAHT BOND Classified by issuers based on TTM THB Mil.

CLMV

30000

33

Non-Gov’t

8%

%

(6,500 THB Mil.)

28,090 THB Mil.

27

25%

(23,066)

23

%

20000

(21,590 THB Mil.)

Mizuho

(20,044)

IFIs , International Credit Rating & CGIF

Government

%

AFD

67%

CBA

(58,019 THB Mil.)

ADB

NOBLE

KEXIM

12

%

10000

7

%

7

(6,330)

%

KEXIM

(5,668) CITI

%

KEXIM

Woori

Hana

Lao PDR Lao PDR

Lao PDR

(Gov’t)

(Gov’t)

2016

2017

(Gov’t)

0 2018

EDL-Gen

7

KEXIM

Lao PDR (Gov’t)

EDL-Gen Lao PDR

(Gov’t)

(Gov’t)

2020

2

%

Lao PDR 2019

KEXIM

(5,701) CABEI

Woori CABEI

(8,000)

%

Woori

Woori

Today

9

(10,000)

ING

2021

3

%

3

%

(2,800)

(3,000)

KEXIM

EDL-Gen

KEXIM 2022

2023

2024

Lao PDR (Gov’t)

(1,500)

2025

Source : PDMO (As of March 4th, 2016)


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