Bonds winning over fans on rising yields but experts warn against over-exuberance

BONDS may be a good addition to investing portfolios as interest rates and inflation are on the rise, but industry experts advise that investors keep to a balanced allocation in order to mitigate risks.

Monthly demand for government-backed fixed income instruments – Singapore Savings Bonds (SSBs), Singapore Government Securities Bonds (SGS Bonds) and Treasury Bills (T-Bills) – have soared alongside yields.

Total bid values at the latest T-Bill auctions came in at more than double the amount on offer, and subscription rates for the latest tranche of SSBs also exceeded the amount available.