Singapore Bond Digest : Ahead Of The Curve

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The kiasu spirit has not failed Singapore yet again.

The Singapore market has manage to pre-empt the Federal Reserve rate hike cycle this time.

Short end funding rates started rising late September and we have the short end SOR (Swap Offered Rate) curve invert, as I type, as the 1 month implied forwards borrowing cost rise above the 1 year interest rate swaps.

It is a big deal for market participants because inversions are not common of late and this could be a sign of times for the SGD dollar in the days ahead.

For the USDSGD broke its 4 year high last Friday, breaking above 1.32 and causing SOR fixings to react in a hurry.


Chart 1 : 5 year chart of USDSGD and 1 Month SOR


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