Bond prices plunge with new rules in place.

Byline: Darana Chudasri

Dec. 6--Bond prices fell across the yield curve on Monday after the central bank announced tighter rules on foreign investment in short-term fixed-income instruments to curb currency speculation.

Total trading value on the Thai Bond Market Association (TBMA) dropped 7.3 percent to 36 billion baht on Monday, with outright deals down 11.8 percent.

Ariya Tiranapra, a TBMA senior vice-president, said the new Bank of Thailand rules would certainly affect foreign trading volume, which accounted for 19 percent of total outright deals in November.

Foreign investors currently account for around 30 percent of all bond …