Singapore’s bond demand feared to shrink after Fed’s hawkish comments

Investors would want to minimise risks.

The two-year Singapore government securities auction will be closing on August 29 and may nip a large demand barring possible impact by hawkish comments from the US Federal Reserve.

DBS Group Research fears demand may be eroded following US Federal Reserve Chair Janet Yellen’s hawkish language during her speech at Jackson Hole.

“A hawkish Fed may temporarily dampen demand for two-year Singapore government securities as investors either head to the very front of the curve, minimising duration risks, or to the back of the curve where the yield pickup over comparable US Treasuries is still sizable,” DBS Group Research explained.

Notably, the net issuance size is $2 billion, compared to a Singapore government securities maturity amount of $7.7 billion on September 1, DBS Group Research said.

Two-year to five-year Singapore government securities, whose yields are trading below the fitted curve, may be more vulnerable to a Fed re-pricing, it added.

Also Read

Daily Markets Briefing: STI down 0.7%; Top stock is DBS

Daily Markets Briefing: STI up 0.41%; Top stock is ST Engineering

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit