Thai stock market faces volatility amid rising US bond yields

The Thai stock market is facing downward pressure and increased volatility due to a combination of domestic and international risks. Analysts note that the SET index is trending lower in alignment with global markets, driven by rising oil prices resulting from Middle East tensions and a significant surge in US bond yields. The 10-year US Treasury yield has reached a 20-month high of approximately 4.7% to 4.8%, which is pressuring risk assets and prompting investors to shift toward commodities and defensive stocks.

Market participants are closely monitoring US economic data, including upcoming employment reports, to gauge the Federal Reserve’s potential interest rate decisions. There is currently a 67% market probability of a rate hike in September following signals of a hawkish monetary policy stance.

In addition to global financial pressures, domestic political uncertainty in Thailand and escalating international trade tensions—including US tariffs and sanctions—are contributing to market instability. Financial experts recommend that investors exercise caution and consider defensive growth and recovery stocks to mitigate volatility.