Morgan Stanley Like Receiving Thai 1y1y

Morgan Stanley "like receiving 1y1y in Thailand as we still see downside risks to the 300K monthly tourist inflows estimated by officials. We think that the BoT could look through a transitory uptick in inflation and reaffirm its accommodative stance at the upcoming MPC meeting, as 10% of the country's national income and up to 20% of domestic employment are closely linked to tourism. Accordingly, front end rates could price out some of the rate hike expectations following positive reopening sentiment. After the recent sell-off, the current valuation is again attractive for investors to re-enter given that positioning in THB rates is still very clean (short-term holding THB81bn versus THB110bn in September)."

• They recommend entering the position at 97bp, with a target set at 70bp and a stop at 110bp.