Foreign investors are withdrawing from the Thai debt market

However, there's still demand for government bonds.

September data has provided further confirmation that foreign investors continued to withdraw from the Thai debt market, with outflows of THB23.7bn, after THB42.1bn in August.

According to a research note from Nomura, however, even as this has happened, interest in government bonds still remains, with inflows of THB8.3bn vs THB22bn in August.

The shorter tenor Bank of Thailand bonds have continued to drive the outflows (THB31.4bn in September after THB53.9bn in August).

Here's more from Nomura:

Net sales data for October indicates the same, but the amount of net selling in shorter tenors (<1yr) has decreased (THB10.2bn vs. THB29.5bn in August), while net buying in longer tenors
(>1yr) is still robust (THB13.9bn vs. THB 11bn in August) – resulting in overall net purchases by foreign investors.

We expect the final October data to show that, after including the impact of redemptions, net flows are likely to be relatively flat, which would signal some improvement in the overall flow picture.