T. Rowe Price Group Inc. likes local bonds in Thailand and Malaysia, betting that further monetary easing will outweigh currency gains as a key driver of investor returns.
Malaysia’s central bank has potential to deliver several more interest rate cuts after its first policy easing in five years earlier this month, while persistent deflation in Thailand should extend support for its debt despite already-low yields, said Leonard Kwan, a Hong Kong-based portfolio manager at the US asset manager. Kwan, who manages the firm’s Emerging Markets Bond Strategy fund, added he prefers medium-term Thai bonds and longer-dated notes in Malaysia.
