SINGAPORE (June 30): Phillip Capital analyst Timothy Ang anticipates a quiet bond market this week as investors wait with baited breath for Fed Chairman Jerome Powell’s testimony to congress (Wednesday), URA’s q-o-q results (Wednesday) and key data on the Singapore economy (Friday) later this week. The result of both announcements will likely influence market confidence and trade volumes going forward. 

Asian USD Investment Grade bonds spreads remain largely unchanged, finishing at 203 base points while trading in the cheaper zone between their 10-year average with a +1 standard deviation spread. Asian USD high yield spreads tightened 15 base points w-o-w to finish at 770 base points, with high yield spreads trading higher than the 10-year +1 standard deviation spread, implying investor caution against Covid-19 risks. 

Shorter one-year and 5-year tenors remain largely unchanged, with one-year falling 1 base points and 5-year rising by 1 base point. Yet, 10-year yields have seen a 3 base point rise w-o-w to end higher at 0.92%. Ang notes that this is unlike 10-year US Treasury yields falling five base points w-o-w amid rising market uncertainties. 

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook