STI Historic High, Bonds Historic Lows
April 29 (Bloomberg) — Benchmark 10-yr note yield falls to
1.357% as of 9:56am in Singapore.
• It compares with close at 1.401% on April 26 and is poised for lowest close since Jan. 23, according to data compiled by the central bank
Not true. Historic low was on 11 Dec at 1.29% for the 10Y.
At the same time, STI is at its historic high today.
I do not know if its the dividend play.
Average dividend yield on STI without adjusting for weights is 2.76%. And if you look at the table below which I have roughly done up for year to date, dividends are favoured over growth engine stocks like poor Keppel and Sembcorp.
The USD/SGD is also testing its 1 month low at 1.2349 and the 6M SOR has been fixing between 0.35 to 0.40 for the entire month (except for a 0.41 fix on 11 April).
I am not sure if we are running ahead of ourselves here or this is the new norm, great rotation or transition if you want to call it but it is looking mighty stretched here.
We are at the end of April. Could it really be Sell in May ?
Hi tradehaven,
Been reading your blog for insights esp. on the bond market. I’ve some qns regarding bond and hope someone like you can enlighten me on this. I bought Aspial bond not too long ago and have recently received a letter from them asking me to vote (as a holder of the note) on changes of the bond they intend to implement. As it contains lots of jargon, what I could roughly gather is a proposal to change the coupon rate higher and extending the maturity period. My 1st qns is, is this normal of an issuer to propose such changes? What things should I note/consider when making my decision? Very much appreciate your advice.
Thanks,
test
Hi Test
Unusual move indeed.
I have not been following the story but at a glance, it looks like they want to loosen their loan covenants ie. they want to be able to borrow more money than they had agreed to.
Do not see the extension of maturity period part but will have to follow up.
Will write up something once I get some analyses done.
Rgds
Last trading day of SIMSCI April contract. Saw a sharp spike at 5.15 pm.