SINGAPORE (Feb 5): For the first time since they were introduced in 2015, demand for Singapore Savings Bonds has exceeded supply.

On Jan 29, the Monetary Authority of  Singapore announced that more than 6,300 investors had submitted applications for $172 million worth of the bonds — versus supply of $150 million. The bonds pay an interest rate that roughly corresponds to the yields of Singapore Government Securities —  currently at 2.2% for a 10-year holding  period.

Could the record take-up be a sign of changing investor preferences? Last month, the yield on 10-year US Treasuries surged briefly past 2.7%. The 10Y has been trading close to that level ever since. Kit Juckes, chief foreign exchange strategist for Société Générale, says it is “going to be hard not  to hit the 3% mark on the 10Y note yields  at some point in the [current economic] cycle”.

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