Singapore benchmark rates have started to decline
Chart 1: Singapore benchmark rates have fallen in recent months

Chart 2: Longer-tenor SG sovereign bond yields have closely mirrored the trajectory of benchmark rates
Chart 3: SG sovereign curve remains deeply inverted
Has this dimmed the appeal of SGD bonds?
Singapore T-bills shine amidst the equity market carnage
Treasures can be found across SGD corporate universe
- STRTR 3.750% 29Oct2025 Corp (SGD) and STRTR 4.100% 04May2026 Corp (SGD) offer close to 4.5% yield for under two years to maturity – one of the higher yielding short duration SGD bonds. Alternatively, GUOLSP 3.290% 26Oct2026 Corp (SGD) and GUOLSP 4.050% 04Jun2027 Corp (SGD) offer above 4% yield for two to three years to maturity.
- OUECT 3.950% 02Jun2026 Corp (SGD), one of the highest yielding investment-grade rated SGD REIT issuances.
- DB 5.000% 05Sep2026 Corp (SGD), an investment-grade rated bank bond boasting high coupons and near 4.2% yield to maturity (and 3.9% yield to call).
|
Issues |
Bond Issuer |
Ask Price |
Years to Maturity/ Next Call |
Yield to Maturity/ Next Call (% p.a.) |
|
The Straits Trading Company |
99.10 |
1.20 |
4.53 |
|
|
The Straits Trading Company |
99.45 |
1.71 |
4.44 |
|
|
OUE CT Treasury |
100.20 |
1.79 |
3.83 |
|
|
Deutsche Bank |
101.13 |
2.05/ 1.05 |
4.18/ 3.90 |
|
|
GLL IHT |
98.40 |
2.19 |
4.06 |
|
|
GLL IHT |
100.15 |
2.80 |
3.99 |
|
|
Sources: Bondsupermart, Bloomberg Finance L.P., iFAST Compilations. Data as of 15 August 2024. |
||||
- GUOLSP 4.400% 27Jul2028 Corp (SGD) and STRTR 4.700% 24Jan2029 Corp (SGD)which offers around 4% – 4.5% yield for a similar tenor of 4 – 4.5 years.
- BNP 4.750% 15Feb2034 Corp (SGD) and CMZB 6.500% 24Apr2034 Corp (SGD) are IG rated bonds that offer around 4.3 – 5.2% yield and has a tenor of more than nine years but are callable in 4.4 more years. BNP Paribas’ 2034 bond is rated “BBB+” by S&P ratings while Commerzbank’s 2034 bond is rated “Baa3” by Moody’s ratings.
|
Issues |
Bond Issuer |
Ask Price |
Years to Maturity/ Next Call |
Yield to Maturity/ Next Call (% p.a.) |
|
GLL IHT |
101.40 |
3.95 |
4.01 |
|
|
The Straits Trading Company |
100.95 |
4.46 |
4.46 |
|
|
BNP Paribas SA |
102.4 |
9.50/ 4.50 |
4.29/ 4.15 |
|
|
Commerzbank AG |
106.75 |
9.69/ 4.44 |
5.21/ 4.79 |
|
|
Sources: Bondsupermart, Bloomberg Finance L.P., iFAST Compilations. Data as of 15 August 2024. |
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- ASTLC 3.000% 18Mar2031 Corp (SGD) - Class A-1 - Retail and ASTLC 4.350% 19Jul2039 Corp (SGD) - Class A-1 - Retail. Both bonds have strong credit rating and offer one of the highest yields within the limited SGD retail bond space.
- We expect ASTLC 3.000% 18Mar2031 Corp (SGD) - Class A-1 - Retail to be redeemed early on its mandatory call date. In addition to the yield, investors will earn an additional 0.5% bonus redemption of the principal amount (owing to the “Sponsor Sharing” feature on Astrea VI).
|
Issues |
Bond Issuer |
Ask Price |
Years to Maturity/ Next Call |
Yield to Maturity/ Next Call (% p.a.) |
|
Astrea VI |
98.53 |
6.58/ 1.58 |
3.92/ 3.93 |
|
|
Astrea 8 |
102.42 |
14.92/ 4.92 |
4.13/ 3.81 |
|
|
Sources: Bondsupermart, Bloomberg Finance L.P., iFAST Compilations. Data as of 15 August 2024. |
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- VRTVEN 3.300% 28Jul2028 Corp (SGD) which offers above 3.7% for a tenor of nearly four years. Vertex Ventures Holdings is a wholly-owned Temasek subsidiary and mainly invest in early-stage and growth-stage technology. The bond offers a yield pickup over the 2-year SGS (yield: 2.75%) and 5-year SGS (yield: 2.72%) as well as bonds of other Temasek owned/ linked issuers. Additionally, the slightly longer tenor allows investors to lock in higher yields for longer.
|
Issues |
Bond Issuer |
Ask Price |
Years to Maturity/ Next Call |
Yield to Maturity/ Next Call (% p.a.) |
|
Vertex Venture Holdings |
98.49 |
3.95 |
3.72 |
|
|
Sources: Bondsupermart, Bloomberg Finance L.P., iFAST Compilations. Data as of 15 August 2024. |
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- OLAMSP 4.000% 24Feb2026 Corp (SGD), which is attractively priced with close to 1.5 years to maturity, and TMGSP 5.250% 13May2027 Corp (SGD), which offers close to 5% yield, with a longer tenor of close to three years. These names offer good compensation to investors for the additional credit risk (credit spread of around 150 - 220bps (z-spread)).
|
Issues |
Bond Issuer |
Ask Price |
Years to Maturity/ Next Call |
Yield to Maturity/ Next Call (% p.a.) |
|
Olam International |
99.00 |
1.52 |
4.69 |
|
|
Thomson Medical Group |
100.93 |
2.74 |
4.88 |
|
|
Sources: Bondsupermart, Bloomberg Finance L.P., iFAST Compilations. Data as of 15 August 2024. |
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