Piti Disyatat, deputy governor of the BOT, said at the IMF and World Bank annual
meetings in Bangkok that although global bond yields have risen markedly,
financial conditions remain relatively loose and market pricing appears
disconnected from the underlying economic uncertainty. He noted equity
valuations are still very high and credit spreads very low, signaling that
market risk appetite has not meaningfully faded. Disyatat warned higher bond
yields are a concern for heavily indebted countries because they raise
government financing costs and could exacerbate fiscal stress.
