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US Treasuries a draw as yield gap with S’pore govt bonds widens, but analysts urge caution
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At current levels, US Treasuries offer a good yield pickup against Singapore government bonds.
ST PHOTO: AZMI ATHNI
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SINGAPORE – Investors are demanding less returns for lending to the Singapore Government now compared with the start of the year. The same thing is happening with lending to the US government, but the drop has been relatively smaller.
This has resulted in a growing gap between the yields of Singapore’s 10-year government bonds and US Treasuries of the same maturity. The 10-year Singapore bond yield is around 2.32 percentage points, or 232 basis points, below that of its US counterparts as at Aug 13, widening from 1.69 percentage points, or 169 basis points, at the start of the year.
