SGD Rates & Bonds Weekly


Economic News
Mar Industrial Production +6.2% MoM vs expected +7.1%
Mar Industrial Production -4.1% YoY vs expected -3%
1Q Unemployment Rate 1.9% unchanged


Deal pricings kept the market busy not trading, exacerbated by the global uncertainty and UST strength. Rates are holding near their historic lows whilst the stock market hits a historic high, a divine combination.

Bids emerged in the short end 1-4Y, probably as a precautionary trade given the absolute low levels. Long ends offered down on cross currency swap deals that the corporate issues were expected to hedge upon.

The Mar Industrial Production numbers are a sign of times and like I said last week, we should still see USD/SGD trade higher in the current environment, regardless of the stock market performance. Malaysian elections on 5 May will likely dampen market trading activity and my view remains “Keeping to last week’s call to keep short end paid to hedge even risks while the other tenors will not be going anywhere for now.


Times are bad when Singapore bond market volume trails Malaysia’s.

Hardly any volume to talk about in the past week and some 2014-2017 issues have not traded in 2 weeks.  Yield levels have drifted along with the irs and UST, keeping bond swap spreads looking lean.

Given the Asean neighbours’ moves to control inflows and the Malaysian elections coming up, we should see another quiet week ahead on this month end and holiday tomorrow.


25-Apr-13 ABJA INVESTMENT CO 4.95% 03May23 300MM 4.95 3-May-23 326 swap to USD
25-Apr-13 RAFFLES EDUCATION CORP 5.9% 03May18 50MM 5.9 3-May-18 509 swap neutral
24-Jan-13 TATA COMMUNICATION NETHE 4.25% 01Feb16 400MM 4.25 1-Feb-16 368 swap to USD
24-Apr-13 ARMF WHITESANDS PTE LTD 2.635% 29Apr20 111MM 2.635 29-Apr-20 183 swap neutral
24-Apr-13 COURTS ASIA LTD 4.75% 02May16 125MM 4.75 2-May-16 425 swap neutral