Investors flock to Singapore bonds as safe-haven demand surges

The global bond market is getting hammered. Long-dated government bonds everywhere are being dumped by investors, sending yields ￰0￱ Singapore? The place is doing the exact ￰1￱ others bleed, Singapore’s bonds are holding up like a goddamn ￰2￱ on 30-year debt this year have jumped around 45 basis points in the UK, 74 in Germany, and a full 100 in Japan. Japan’s long bond yield just hit a record high on ￰3￱ in the UK, 30-year gilts are now at their highest levels in nearly thirty ￰4￱ moves are being driven by fears of inflation, rate hikes, political instability, and giant fiscal holes.

“Bond market performance year to date has indeed been dismal for developed markets, particularly UK gilts and JGB, owing to their adverse local dynamics,” said Winson Phoon, Head of Fixed Income at Maybank ￰5￱ fall as Singapore bucks the trend While the world panics, Singapore’s 30-year bond yield has dropped by about 75 basis points this year. That’s not a ￰6￱ are piling into Singapore bonds, and that demand is pushing prices up and yields down. (Bonds move like that: prices up, yields ￰7￱ vice versa.) “Investors who are concerned about a cooling global economy might find Singapore’s AAA credit rating and consistently conservative fiscal policy attractive,” said Yujun Lin, CEO of Interactive Brokers ￰8￱ he’s not ￰9￱ country is one of just nine on the planet to have a AAA rating from all three major credit agencies — S&P, Fitch, and Moody’s.

That’s better than the U. S., which only has AA+ from S&P and Fitch. Japan? It’s sitting at A+ from S&P, four full notches below ￰10￱ most places, Singapore is required by law to balance its budget over the term of a ￰11￱ constitution doesn’t allow reckless spending ￰12￱ country has no net debt.

None. “Our strong balance sheet explains why Singapore receives the top credit rating of AAA from the three leading international credit-rating agencies,” the government said in an official ￰13￱ surge as inflation stays tame When Singapore issues bonds, it’s not to patch holes in the budget, but rather to smooth out cash flow, support the local debt market, or help set price references for private ￰14￱ other central banks hike interest rates to fight price spikes, Singapore is doing it differently. It’s managing inflation with a different tool, the exchange ￰15￱ Monetary Authority of Singapore (MAS) doesn’t set interest ￰16￱ controls the strength of the Singapore ￰17￱ when inflation gets hot, they let the currency surge, which makes imports cheaper, so then there is less ￰18￱ less inflation means bond yields stay low and real returns stay positive, with Singapore’s July inflation being just 0.6%, the lowest since January ￰19￱ of this, the tight fiscal controls, the tame inflation, the AAA rating, is attracting a lot of ￰20￱ added that Singapore’s solid macro conditions have brought in big capital inflows, clearly visible in the ￰21￱ Singapore dollar has surged about 5.46% against the ￰22￱ so far this year, per data from ￰23￱ from Maybank also said demand has been rising fast.

“Bids for Singapore bonds have turned more aggressive on pricing amid ample liquidity conditions,” he noted. There’s money chasing those ￰24￱ with the Monetary Authority of Singapore showing no signs of draining liquidity, yields have dropped hard and may stay down for a ￰25￱ one’s saying Singapore is ￰26￱ in a year where most bondholders are getting burned, it’s one of the very few places offering safety, returns, and stability… all at ￰27￱ for global investors trying to hide from the storm, that’s hard to ￰28￱ up to $30,050 in trading rewards when you join Bybit today