Sibor up for 3rd consecutive day

THE key three-month Sibor (Singapore interbank offered rate) rose for the third consecutive day on Wednesday, in line with rising interest rates globally.

Used to price mortgages, the three-month Sibor climbed on Wednesday to 0.92 per cent from 0.91 per cent on Tuesday and 0.88 per cent on Monday. Until Monday, it had flatlined at 0.87 per cent since July.

The Sibor hike is part of the global reaction to higher short-term interest rates, said Stephen Innes, senior trader at Oanda.

"We are seeing a move away from easy money by central banks towards fiscal stimulus as monetary policy has not been effective, productive for the economy," said Mr Innes.

A key indicator for US short-date interest rates, the bellweather two-year US Treasury Note has risen to just over one per cent, he noted.

The yield on two-year Treasuries rose to 1.029 per cent, the highest since early January, said Reuters.

Traders have assigned about a 94 per cent probability, the highest level this year, that the US Federal Reserve will hike interest rates next month, said Bloomberg.