sovereign bond

ESG INSIGHTS

Issue 189: Carbon tax in an energy crisis; Singapore good timing on green bonds

This week in ESG: Singapore’s carbon tax may have room for relief; Reopened 30-year Singapore green bonds yield 2.57 per cent

Bond traders have flocked to markets with stronger buffers against energy‑driven inflation shocks, including Malaysian sovereign bonds.
ASEAN BUSINESS

Amid an emerging market bond sell-off, traders eye attractive Asean moves

Malaysia and Philippine debt could see inflows, but Iran conflict may keep credit conditions fragile

The fiscal support anchors inflation, buoying Malaysian sovereign bonds and the ringgit as regional peers struggle.

Foreigners chase Malaysian bonds as war hits emerging markets

Global funds buy over US$2 billion in Malaysian bonds as at Mar 19, hitting a 10-month high for inflows

The RBI’s latest measures will add to liquidity injections worth about US$16 billion since early December.

India’s RBI to inject 2 trillion rupees via fresh bond buys, US$10 billion in FX swap

This is to offset the cash drain from its US dollar sales in the currency market to support a weakening rupee

The euro offering comes on the heels of China’s successful US$4 billion  dollar-denominated bond sale about two weeks ago.

China’s euro-denominated sovereign bonds sale sees strongest demand in six years

The offering is around 12.5 times oversubscribed, attracting orders exceeding 50 billion euros

Interest rates may trend lower near term, but there are substantial risks of much higher interest rates over the longer term.
SENSE & CENTS

Mega trends could drive more elevated interest rates over the longer term

High trade tariffs and weak sovereign credit will exert upward pressure on interest rates 

 The central bank is expected to keep interest rates unchanged at 2.75 per cent to 2026.

Corporate issuance poses headwinds for Malaysian sovereign bonds

Ringgit swaps are now pricing eight basis points of easing over the next six months, from as much as 20 basis points in mid-August

A new generation of European sovereign bonds, modelled on the NextGenerationEU pandemic-recovery fund, but longer-term and deployed more strategically, could directly benefit the middle class.
THE BOTTOM LINE

European democracy needs its middle class back

It’s time for an ambitious three-pronged plan to strengthen the backbone of stable, prosperous societies

The US Capitol in Washington, DC. The US is embarking on financial deregulation at a time of high leverage and financial risk-taking. It is also continuing with high fiscal deficits while attacking its creditors via trade and fiscal policy.

Interest rates are normal, the world is not

Given all this fragility, recessionary or inflationary shocks – or even both together – are conceivable

The offshore yuan sovereign bonds will be issued in two and five-year tranches if the deal goes ahead.

China looks to raise 5 billion yuan in offshore yuan bond deal: sources

CHINA is looking to raise 5 billion yuan (S$929 million) in a dual-tranche offshore yuan sovereign bond deal, according to two sources with direct knowledge of the matter.